Why Haven't Gasoline Prices Fallen More?

Oil prices have dropped substantially since the spring, leading to this question.  Dr. Brian Goff examines monthly price data from 1990 to 2011, considering the influence of oil prices along with oil and gas inventories and “momentum” in gasoline price movements.  Even with these other factors, gasoline prices, have, indeed, lagged behind the decline in oil prices.  The opposite case, however, also arises, and usually, oil prices predict gasoline prices very closely.

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