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 CONDITION.