January-delivery crude oil slipped 1.3 percent from early- to mid-December, Bloomberg reports, while the price of gas at filling stations in the U.S. increased nearly 0.08 cents per gallon during the same period, according to a survey.
A California-based independent analyst reviewed information from 2,500 gas stations and found the average price of gas increased to $2.988 per gallon, noting fuel’s price would have risen 0.10 had the value of crude not fallen.
"The retail rise would have exceeded a 10-cent rise if it wasn’t for oil’s slippage of $1.17 a barrel, which equates to nearly 3 cents a gallon equivalent," according to Trilby Lundberg an independent analyst of Camarillo.
During the two-week period, crude’s price dipped $1.17 to settle at $88.02 per barrel on the New York Mercantile Exchange. More than half of the 34 analysts interviewed for a Bloomberg survey indicated the price of oil might decline this week.
The "fluctuation in crude prices" is "driving the price of gasoline more than usual," she said. "There aren’t other issues; we have a surplus of gasoline, a surplus of refining capacity and high unemployment."
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
