Thayer says relationship between gasoline prices and the GDP is obvious and the ripple effect could have wide ranging implications. However, Thayer says he sees evidence that consumers will begin to see declining pump prices and points out that crude oil inventories have already risen sharply this spring. While some worry that oil refineries are already operating at near full capacity and will not be able to handle the consumer demand, Thayer says these fears are overstated. Therefore, I do not see this as an issue. Thayer also says many predictions for increasing gasoline prices were made in early spring, before crude oil inventories significantly increased.
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