Re: oil supply
When I said the correlation between oil & gasoline prices was pretty
tight, I should have given some numbers. Since 1973, the correlation
coefficient between the yearly change in the monthly average price of
oil (West Texas Intermediate) and the average price of gasoline in
the U.S. (U.S. Department of Energy) is .854; with the gas price
lagged a month, it’s 0.884.
Doug