Gasoline demand in the United States typically peaks in
the summer months as people emerge from their winter hibernation, take
vacations and just drive more in general. Additionally, US regulations
require a summer fuel blend that is more expensive to produce. The
combined factors of increased demand and a more expensive product can
often lead to spikes in price. However, given the unique situation of
crude and gasoline stocks this year, should traders anticipate rising
prices?
Crude oil prices have fallen dramatically since late 2014,
as fracking production has helped to rack up record supplies. Today's
WTI crude prices are about half what they were last year at this time: chart provided by Barchart.com
According to the EIA, crude oil stocks continue to build and we remain well above the five year average, with total stocks at 482.4 million barrels, compared with 384.1 million a year ago. (more)
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