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