I talked about gasoline nearly two months ago, where price was near monthly and daily supply, the chart suggested price was going to reverse and layout the groundwork for the trade set-up.
If you missed the trade, here’s what I’m looking for next…if price is going to move lower, it must take out the demand circled in pink, then pull back, before heading lower.
Oil prices fell into bear market territory on Wednesday thanks to global tensions and fears about oversupply – but that could spell good news for drivers over the coming weeks.
The main driver of sliding oil prices recently, according to GasBuddy.com senior petroleum analyst Patrick DeHaan, is economic uncertainty over trade policy – and a potential slowdown in U.S. economic growth limiting oil consumption.
Along with oil prices, gas prices have fallen, too. The national average as of Wednesday, according to AAA, was $2.79 per gallon – down from $2.81 one week ago and $2.89 one month ago. Gas prices fell below $2.80 per gallon for the first time in nearly two months.
But recent moves in oil prices suggest there is still room to fall.
“I think we have a good distance to go before gas prices catch up to the recent plunge in oil,” DeHaan told FOX Business.
Today, the price of gasoline is much lower and because gasoline’s supply and demand is seasonal, I anticipate by the fourth quarter of this year, price will fall back down to the monthly demand at 1.3250.
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.