While the recent ascent in the price for a barrel of oil would
suggest higher gas prices for American consumers, the ascent of
oil in recent months has not correlated to an ascent in gas
prices. Typically, a $10 rise in the price of oil results with a
24 cent increase in the price for each gallon of gas, as
discussed in the past here. This formula is generally accurate
as exemplified in the link above in which the average price of
gas was correctly calculated two weeks in advance, but the
recent appreciation of the US Dollar is testing this formula.
The price of oil has gradually risen from $76 in late September
to its current value of about $95, while the average price for a
gallon of gas has simultaneously declined from $3.66 per gallon
to $3.29 per gallon, according to the US Energy Administration.
This nearly $20 rise in the price of oil has not resulted with a
corresponding rise for the average price for a gallon of gas,
which should have been about 48 cents to about $4.14 per gallon.
Thus, the rise in o