The last time I posted about gasoline was in late June,
The refinery was the largest and oldest on the East Coast went up in flames, removing 25% of the refining capacity in the Northeast in the process.
The chart suggests if gasoline can rise a bit higher to short (due to gasoline supply concern) price at the daily supply at $2.015.
In the article I talked indirectly about gasoline being a derivative of oil, which means that if oil rises/falls, gasoline will follow suit.
Retail gasoline prices tend to rise in the spring and peak in the Summer when people drive more frequently. So the set-up had the seasonality going for it as well since the accident was a month past Memorial Day.
Needless to say price hit the daily supply at $2.015 and fell.
According to AAA, the national average is about $2.69 per gallon now, down from a couple of cents from last week. I anticipate retail gasoline prices continue to decline in the coming months. The gasoline futures’ chart suggests price is heading down to $1.4500
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.