Article ID Journal Published Year Pages File Type
10487459 Energy Policy 2005 10 Pages PDF
Abstract
We revisit the issue of asymmetries in the relation between the price of crude oil and refined petroleum products in the United States. An econometric analysis of monthly data indicates that the asymmetric relation between the price of crude oil and motor gasoline is generated by refinery utilization rates and inventory behavior. The asymmetric relation between the price of crude oil and home heating oil probably is generated by contractual arrangements between retailers and consumers. Together, these results imply that price asymmetries may be generated by efficient markets. Under these conditions, there is little justification for policy interventions to reduce or eliminate price asymmetries in motor gasoline and home heating oil markets.
Keywords
Related Topics
Physical Sciences and Engineering Energy Energy Engineering and Power Technology
Authors
, ,