Oil and Gasoline: A Tale of Two Prices

A number of you have contacted me asking some variation of the same question.
How can the price of oil be declining, yet the price of gasoline remain so high?
Good observation.
At close of trade yesterday, the West Texas Intermediate (WTI) benchmark futures crude oil contract for the near out month in NYMEX trade had declined 2.6% for the week and 4% for the month.
However, the same contract for RBOB (Reformulated Blendstock for Oxygenate Blending) – the NYMEX gasoline future…

Keep on reading: Oil and Gasoline: A Tale of Two Prices