Gasoline Analysis Report 8/9/19 – More Declines To Come

The last time I posted about gasoline was in late June,

Gasoline Analysis Report 6/27/19 – Will Prices Continue To Rise???

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.

Unleaded Gasoline miNY Futures (QU) Seasonal Chart

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.

About the author: TIMM Trader
Uniting Experts & Novices for Mutual Profit!

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