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.
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