Economics
U.S. gasoline averaged over $4 per gallon on October 1
Gasoline stayed above $4 per gallon and Crude Oil did not set a new record high.
On October 1, the U.S. Average gasoline price remained at $4.00 per gallon or higher. The price level persisted even though West Texas Intermediate Crude Oil did not reach a new all-time high by the end of September. In September, WTI Crude Oil also avoided falling to $80 a barrel.
Data showed the price never dropped below that amount during the day. Nationwide retail gasoline costs therefore stayed at or above four dollars per gallon.
Crude Oil prices did not set a new all-time high by September 30. The benchmark therefore closed the month without a fresh high.
West Texas Intermediate Crude Oil stayed above $80 a barrel throughout September. The low-price target of $80 was not reached during the month. The benchmark therefore never fell to that level before the month ended.
Analysis
Gasoline staying above $4 while Crude Oil failed to hit a record suggests that the retail fuel price is being driven by factors beyond Crude input costs.
Without a price spike at the benchmark, expectations for lower gasoline prices were not met.
WTI not slipping to $80 a barrel shows that the low-price target was missed, reinforcing the view that Oil prices remained relatively firm. This firmness, combined with other cost components, helped sustain the $4-plus gasoline level.
What this was built from
Each claim above traces to a market below, at the price it was trading when this edition went to press.