Skip to main content

Happy Memorial Day Driving With the Price of Gasoline at a New Record High

The pump price of gasoline hit a record high on Memorial day. Where to from here?
  • Author:
  • Publish date:
Gasoline prices courtesy of the AAA

Gasoline prices courtesy of the AAA

According to the AAA the Average National Gasoline Price hit a new record high on Memorial day, typically the heaviest weekend for automotive driving. 

Gasoline Price Details 

  • The average price per gallon is a record high $4.160.
  • California leads the way with an average price of $6.139.
  • The average price in Mono County, California is $7.032. 
  • The average price is above $4.00 in every state.
  • Wisconsin has the lowest average at $4.379.

West Texas Intermediate Crude

West Texas Crude chart courtesy of StockCharts.Com

West Texas Crude chart courtesy of StockCharts.Com

The price of crude peaked in the US at $147.27 in 2008. The price now is $115.07.

This has economic illiterates like Elizabeth Warren and President Joe Biden complaining about gas price gouging. 

But crude is just an input to gasoline prices. Refining, transportation, the price of chemicals, and regulations come into play.

Unleaded Gasoline Futures

Unleaded Gas Futures courtesy of Barchart.Com, Annotations by Mish

Unleaded Gas Futures courtesy of Barchart.Com, Annotations by Mish

Factoring in refining, transportation, the price of chemicals, and regulations, it's no wonder gasoline prices are at record levels although crude itself isn't.

The chart is interesting for other reasons. Normally, the managed money crowd are trend followers. They rides waves up until they crash. Here, managed money moved to the sidelines despite rising prices. 

Scroll to Continue

RECOMMENDED ARTICLES

This is bullish in isolation. But we must also factor in crude futures positioning.

Crude Futures 

Crude Futures courtesy of Barchart.Com, Annotations by Mish

Crude Futures courtesy of Barchart.Com, Annotations by Mish

Managed money largely got shaken out of crude futures as well. 

Long liquidation reversals are always a risk, but speculation looks relatively tame. This setup provides less fuel for a cheap sustained plunge.

Oil Looking Bullish, President Biden, PM Boris Johnson, and EU Looking Foolish

The technicals, fundamentals, and politics make for an interesting oil and energy setup.

For further discussion of oil prices including inane political responses, please see Oil Looking Bullish, President Biden, PM Boris Johnson, and EU Looking Foolish

This post originated at MishTalk.Com.

Thanks for Tuning In!

Please Subscribe to MishTalk Email Alerts.

Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.

If you have subscribed and do not get email alerts, please check your spam folder.

Mish