Why Gasoline Prices Remain High Even as Crude Oil Prices Fall – April 2022
Severin Borenstein, Faculty Director, and Lucas Davis, Faculty Affiliate, comment on the outcomes of crude oil prices in the Washington Post article.
“‘Anybody who’s producing oil is making boatloads of money right now,’ said University of California at Berkeley economist Severin Borenstein, a godfather of rockets-and-feathers research. ‘That doesn’t mean oil producers are doing anything anticompetitive,’ he clarified later, ‘just that they are the lucky beneficiaries of a disrupted market that is driving the market price way above their production costs.’ When the oil industry gets lucky and prices rise, executives reap the benefits, according to an Energy Journal analysis of pay at 78 U.S. energy companies by University of Michigan economist Catherine Hausman and UC Berkeley economist Lucas Davis.”
Photo: washingtonpost.com