Publications: The Petroleum Economics Monthly

Price Spreads and Price Dynamics (June 2016)


This issue of The Petroleum Economics Monthly is quite technical. It also celebrates the success of energy commodity markets, especially energy futures markets. Here we show how consumers in parts of the United States have benefited from lower gasoline prices thanks to the maturation of energy commodity and futures markets. The savings is on the order of twenty cents per gallon. Consumers in other parts of the country, particularly California, have not enjoyed such benefits. The cost to Californians will total perhaps $2 to $3 billion in 2016, according to our rough calculations. Alternatively, one can assert that Californians continue to pay as they have in the past, while consumers in much of the rest of the country will save between $6 and $7 billion in comparison this year. For more detail, please use the link below to download or view the report summary.