[lbo-talk] oil supply

[Doug Henwood]

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