2007-01-04 15:02:26 · 4 answers · asked by The Oliver 3 in Social Science ➔ Economics
Crude oil price + refining + distribution, marketing + taxes (each a percentage of the total) = expected price per galon at the pump.
2007-01-05 00:40:28 · answer #1 · answered by Quest 6 · 0⤊ 0⤋
If x = the price of crude oil and y = the price of gasoline:
y > x
Since it costs money to transport the crude, and process it into gasoline, gas will most likely always cost more.
Also, expect that gas station owners will expect oil prices to continually rise in irregular increments, so it's unlikely there will ever be a significant decrease in gas prices.
Since oil is a finite and non-renewable resource, expect oil prices to basically continue rising until someone finally invents or discovers an inexpensive alternative... and sells it really well. Probably not for a few years, at least.
As far as using gas prices to speculate on oil futures (which would be why I'd ask a question like yours), gas reacts to oil, instead of the other way around. Probably not going to be useful.
In short, oil prices < gas prices = whatever we'll pay.
2007-01-04 15:34:51 · answer #2 · answered by wood_vulture 4 · 0⤊ 0⤋
Probably not; In the US, gasoline is regionally priced based on supply and refining cost. There are over 120 different regional blends of gasoline on the East Coast alone; so there is no surplus storage capacity since gasoline usually can't be sold outside each region. Thanks to the EPA and the environmentalists.
2007-01-04 15:18:05 · answer #3 · answered by Albert F 5 · 1⤊ 0⤋
No there isn't
But you can ealiy find one by running a simple regression
Y = X1b(beta)+X2B(beta)+ .......c
where you can have X1 = price of crude oil, X2 = seasonal dummy, X3= number of cars, etc and extimate what Y(price of oil )is given you have data on the rest.
2007-01-04 18:12:32 · answer #4 · answered by zoomzoom 2 · 0⤊ 0⤋