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How to Monitor Fuel Prices

Here is an interesting chart. It shows the forward curve for wholesale gasoline futures (RBOB) for the last three weeks.

The key aspect to note is that the front month price moved thirty cents higher in two weeks, while the overall curve declined by about fifteen cents.

Observers who watch the popular media front-month price will be misled — seriously!

Monitoring fuel prices is best done by considering the entire forward curve.

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