Thursday, May 3, 2012

Lower Gasoline Prices: This Summer's Coming Blockbuster?

From Bespoke Investment Group:
With the month of May upon us, now is the time of year when we start to hear about the upcoming Summer Blockbuster Movie season.  While there are plenty of big movies on tap for this Summer (The Amazing Spider-Man, The Avengers, The Dark-Knight Rises, etc) the biggest blockbuster may be lower gas prices.

As shown in the chart below, gasoline futures have seen a sizable drop over the last several weeks and are now down more than 9% from their peak levels at the end of March.

With the price of WTI crude oil still well over $100 per barrel, why is the price of gas dropping?  The key lies in the price of Brent crude oil prices, which gasoline prices are more closely correlated to....MORE
That March 29 top-tick at $3.4455 was about 12 days before we posted "Gasoline Prices Rolling Over".
We're slow but we do catch on.