Part Three: Summer is over and lower gas prices are on the way

By: George Butler / October 12, 2018

On September 17th I wrote about "Relief at the Pumps," talking about lower gas prices are on the way. Since then retail gas prices have moved higher. In Pittsburgh, PA 87 grade Unleaded gasoline prices are now averaging $3.15 per gallon with a high of $3.239.

Due to the seasonality of our business we typically see declining prices into fall and winter culminating with the lowest prices of the year. Why have prices bucked the seasonality trend?

On September 17th the front  month NYMEX RBOB contract closed at $1.9646 per gallon. The market started to trend higher on the uncertainty surrounding Iranian sanctions and the loss of OPEC's second largest producer.

On September 24th after the OPEC/non-OPEC meeting, Saudi Arabia Minister of Energy, Khalid Al Falih stated OPEC production won’t be increased. Leading to the prospect of a severe tightening of global supply.

On October 3rd the market topped out at $2.1500 before closing at $2.1378 per gallon. A $0.17 move up in two weeks before finally starting a multi cent price correction starting October 4th.

 See the chart below.

 chart-4


Categories: OPEC, oil and gas, gasoline, Daily Market Update


George Butler

Written by

George Butler


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us