Gradually increasing gasoline prices look to continue as a result of strong global demand yet smaller supplies for the commodity, according to a published report.
CNN reports oil industry group American Petroleum Institute believes the tighter market is likely to continue as supplies continue slipping. Strong demand in 2010 hit a daily record of 87 million barrels, attributable to India, China and the Middle East.
"Demand is not outpacing supply in the physical market," Tim Evans, a futures analyst at Citigroup, told CNN. "Demand is outpacing supply in the paper market, in the futures market."
During the past month, prices for gasoline have increased 0.12 cents per gallon, a 4 percent increase. And during the past year, prices have risen 0.39 cents per gallon, a 14 percent increase.
Shortly after 1 p.m. on Friday, gasoline futures were up 1.42 percent, a 0.344 cent increase to $2.4569 per gallon.
Supply of the commodity was partially harmed by the drilling moratorium imposed on the Gulf of Mexico in the aftermath of the British Petroleum disaster.
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.