Latest / Energy Economics with Fexingo: Oil Prices, Renewables, and the Cost of Power
Why Gasoline Is Falling Faster Than Oil This Time
Episode 52 of Energy Economics with Fexingo. Oil prices have dropped sharply in early June 2026—WTI crude fell from $95 to near $84 in just a week, and Brent is below $88. But unlike past episodes where gasoline lagged oil declines, regular gas at the pump has dropped from $4.30 to $4.15 over the same period. Lucas and Luna examine why this time is different: refining margins are collapsing as new capacity comes online, and the Iran deal uncertainty is compressing risk premiums. They walk through the data—gasoline crack spreads down 30 percent, the XLE energy sector falling 3 percent—and…
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