Gasoline is one of the products refined from crude oil . Thus, the price of crude oil should have a strong influence on the price of gasoline. However, the retail price of gasoline includes other costs as well. The Energy Information Administration (EIA) estimates that in the United States from 2008 to 2017, crude oil represented only 61% of the retail price of gasoline. Refining costs and profits represented 12%, distribution and marketing costs 12%, and federal and state taxes 15%. Gasoline prices are also influenced by gasoline demand relative to gasoline supply . So how strong, indeed, is the relationship in the United States between crude-oil and gasoline prices? To answer that question, I examined the daily prices of crude oil (from EIA ) and regular gasoline (from GasBuddy ). The 10-year period covered was from April 24, 2008 through April 23, 2018. Although the gasoline prices were […]