Low Prices at the Pump Takes Gasoline Futures to Six Month High

Gasoline futures are down two weeks in a row after six-month highs were made just poor to Memorial Day weekend because of record usage and the lowest pump prices in a decade. Gasoline futures are down nearly .03c from last week currently trading at $1.5862 at the New York Mercantile Exchange. The Energy Information Administration said today that gasoline usage which typically peaks between Memorial and Labor Day will average a record-breaking 9.5M barrels during the second & third quarters – up slightly from the prior May forecast. Gasoline prices have fallen from $2.63 this time last year. to a forecasted price of $2.27 per gallon for the 2016 driving season. Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental view of the gasoline futures market by stating, “Despite crude oil prices grinding higher and record gasoline usage predicted, we’re seeing gasoline prices tapering off – disconnecting with crude you can say.” Craney adds, “Low gasoline prices alone are what’s driving the gasoline demand. People want to get out more if they can afford it.” The technical trend for reformulated-blend gasoline futures is at a crossroad from being up at its high only three weeks ago. If gasoline futures were to extend their lows tomorrow, that could change the trend to down – a win for the consumer. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Gasoline Futures at Three-Month High Amid Record Demand

Gasoline futures have reached three month highs this week on reportedly record demand. Gasoline futures are down a mere 22 points today currently trading at $1.5925 per gallon at New York’s Mercantile Exchange. The world’s biggest oil producers are said to have failed in agreeing to an oil output freeze at a time when domestic gasoline demand is surging. With the American peak summer driving season still approaching, US gasoline consumption rose to 9.25 million barrels a day in March – an all-time high for that month – according to the American Petroleum Institute this time last week. Scott Roberts, co-head of high yield investments and manager of $2.7 billion at Invesco Advisers Inc. in Atlanta, shared his fundamental view of the gasoline futures market by stating, “It doesn’t make sense to go short ahead of summer because of strong gasoline demand.” Roberts adds, “Refiners are coming back and with that crude demand.” Gasoline futures is up with no top yet in sight one month ahead of the Memorial Day weekend peak driving demand holiday. Even with record demand, gasoline futures remains well below “war-era” prices and I wouldn’t be surprised to see even lower gasoline prices at the end of the year. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

A US Recession May be Drawing Near if Gasoline Futures Are an Indication

Gasoline futures are behaving, according to Goldman Sachs, as if the US economy is headed toward a recession. Gasoline futures are .01 and a quarter-cent today currently trading at $1.2333 per gallon at the New York Mercantile Exchange. An analyst at the banking/investment firm notes that deferred gasoline futures of the summer months are currently trading less than $20 per barrel higher than crude oil meaning, if this were last trading day of those contracts, then the premiums are the smallest in the past six years when the unemployment rate was higher than 9%. The analyst notes this is quite a deviation from last year when gasoline premiums fluctuated between $23 to $33 a barrel above crude oil prices. “We’re entering the time of year when gasoline refineries are conducting maintenance and cutting back output because of the low demand driving season, but if we slip into a recession (as predicted), then demand might remain constant at best,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her fundamental assessment of the gasoline futures market. Levy added, “Currently economists reportedly give a 15% to 20% chance of a US recession happening.” Gasoline futures trend is down with no bottom yet in sight. Gasoline futures low is about $1.12 per gallon wholesale without the ethanol blend, but how long the favorable consumer prices will last before the driving season kicks into gear is anybody’s guess. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD...