Quote:
Originally Posted by BuckeyeMike80
someone correct me if I'm wrong, but the gas we are buying now was bought as oil back in late March/Early April.....
It doesn't always correlate, but we'll be in $4 a gallon by the end of June as the oil from the run up to Memorial Day hits the refineries and then the pump.
I am SO glad this is finally hurting us...maybe now we will do something else than sitting around and making meaningless statements for the camera in DC....
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A reasonable metric is not so much which gallon of gas is in the pipeline so much as when is the price of the higher oil reflected in wholesale gasoline, and then later at the pump.
This article suggests that, in general, wholesale gasoline responds very quickly to adjustments in the going rate per barrel of oil - then in another three weeks that price adjustment would be reflected at the pump. So early May prices, by that model should be in play right now.
Where I think the thesis in the article breaks down is that we have been witness to near instantaneous reflection of increased spot oil price to higher prices at the pump.