by Bespoke Investment Group
ln the summer of 2008, the price of oil ticked close to $150/barrel, and at the same time the national average price for a gallon of regular gasoline ticked to $4.05. Gas prices didn't stay above $4 for long, however, and within a month of the $4.05 peak, the price had dropped by 35 cents. Within three months, in the midst of the financial crisis, the price per gallon had fallen to $2.80.
As shown below, the price of gas is now much closer to its 2008 high than the price of oil. In fact, the national average for a gallon of regular is currently at $3.90, or just 3.8% away from $4.05. Oil, on the other hand, is still 28% from its all-time high reached in 2008. Consumers can only hope that prices don't stay near or above $4/gallon for long. Unfortunately, a big decline in gas prices would likely coincide with a slowdown in the economy and a drop in equities.
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