 Quote:
Originally Posted by Want2retire
- - but the recent drop in gas prices is hard to explain!
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Gasoline prices have pretty much tracked oil prices downward.
A barrel of oil has dropped from a peak of $147 to about $52 currently - a drop of $95. A barrel of oil is 42 gallons. So a "back of the envelope" calculation suggests each $1 drop in the price of oil, would lead to a 2.4 cent drop in the price of a gallon of gasoline. 95 x 0.024 = $2.28 reduction in gas prices, which pretty much puts us where we are today.
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