Gasoline Prices Rule Of Thumb: Confirmed!

Mish has access to charts I could only wish to have, and he pulled a couple as part of his Gas Price Seasonality, Where to from Here? posting.

Here they are, out of context:

Crude oil prices:



Gasoline prices:



And an overlay for those who missed the correlation:



It is nice to finally have graphical representation of me being right: My rule of thumb is (mostly) valid.Every $25 to $30 on the price of a barrel of oil gives you about $1 on the price of a gallon of regular unleaded gasoline after a very short delay.

Click any of those charts to see them full-sized. A big ol' hat tip to Michael Shedlock for the first two.