Latest / Energy Economics with Fexingo: Oil Prices, Renewables, and the Cost of Power
How Gas Prices Stay High When Oil Drops 4 Dollars
Oil prices have fallen sharply over the past week — WTI crude dropped nearly 4 dollars, Brent is below 98. Yet at the pump, regular gasoline sits at $4.15 a gallon, barely budging from last month's peak. Lucas and Luna explain the mechanics behind the 'rocket and feather' pattern in gas pricing: why retail prices shoot up fast when crude rises but trickle down slowly when crude falls. They walk through the refining margin bottleneck, the role of regional inventory constraints, and why the Iran deal headlines that are spooking oil traders won't show up at the pump for weeks…
The skinny
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