Latest / Energy Economics with Fexingo: Oil Prices, Renewables, and the Cost of Power
Why Gas Prices Rose While Oil Fell
On September twenty-sixth, two thousand twenty-six, West Texas Intermediate crude oil dropped three and a half percent to ninety-two dollars while regular gasoline prices climbed to four dollars forty-eight. This divergence defies the basic mechanics of energy markets, where refined product costs usually track directly with barrel prices. Lucas and Luna investigate the specific structural breaks in the refining supply chain that are causing this disconnect. They examine how capacity constraints at major refineries in the Gulf Coast are limiting the conversion of cheap crude into drivable…
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