Tuesday, July 3, 2012
This chart compares wholesale gasoline futures (orange line) with the AAA nationwide average price of regular gasoline at the pump (white line). Futures naturally tend to lead retail prices, and now that futures prices have been flat for the past month, the big decline in pump prices is just about over. Crude prices have ticked up this past week on Middle East tension, which is more reason to suspect that the decline in gasoline prices is essentially over for now. At these levels, gasoline prices don't present any particular threat to the economy, and may even be a source of some comfort.
Posted by Scott Grannis at 9:58 AM