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But we saved everything 🙂.
A study from 2019, highlighted by Greg Ip, finds that U.S. retail gasoline prices were responsive to both Brent and WTI crude benchmarks before January 2010.
Since January 2010, however, gasoline prices in the U.S. have responded only to Brent prices, with WTI losing its prior influence. No further details from the report were included in the tweet.
The shift in gasoline price responsiveness to Brent over WTI complements prior analysis of the U.S. energy landscape, particularly how a reduced vulnerability to oil shocks has lessened the risk of stagflation or recession, as discussed in Greg Ip’s examination of the *U.S. oil shock impact*. Additionally, understanding shifts in market benchmarks provides context for monetary authorities’ focus on inflation measurement, such as the Federal Reserve’s preference for the *PCE inflation gauge over CPI* in its policy framework.