by Bill McBride on 10/21/2012 06:24:00 PM
Sunday, October 21, 2012
Gasoline prices averaged $3.7529 per gallon on October 19, down from $3.8375 on October 5, Trilby Lundberg, editor of the Lundberg Survey, said.Those of us in California are still waiting for the "dramatic crash"! We are still paying well over $4 per gallon because of the recent refinery issues (I filled up Friday and paid $4.50 per gallon, but it looks like prices have fallen further over the last 2 days).
Lundberg said further declines in retail gas prices are expected if the cost of crude oil does not rise substantially. She added that in California, gasoline prices could have a "dramatic crash" after refinery problems caused a spike two weeks ago.
Using the calculator from Professor Hamilton, and the current price of Brent crude oil, the national average should be around $3.60 per gallon. That is about 8 cents below the current level according to Gasbuddy.com, and I expect prices to fall further. Note: Brent crude spot prices is at $110.76 per barrel (WTI is down to $90.05)
Gasoline prices have been on a roller coaster all year. Add a California city to the graph - like Los Angeles or San Francisco - and you will see the recent spike.
Note: If you click on "show crude oil prices", the graph displays oil prices for WTI, not Brent; gasoline prices in most of the U.S. are impacted more by Brent prices.
|Orange County Historical Gas Price Charts Provided by GasBuddy.com|
• Summary for Week Ending Oct 19th
• Schedule for Week of Oct 21st
Posted by Bill McBride on 10/21/2012 06:24:00 PM