After the US energy department reported about lower gasoline and distillate stocks, gasoline futures started growing in value.
What to expect from fuel prices in the near future? will answer this question.
May Futures Downtrend:
In early May, gas futures depreciated dramatically after a prolonged period of stable prices.
In late April, the prices fluctuated within the range between $3,1080-3,1480 per gallon. However, in early May, the ECB expressed concerns over the eurozone economy, thus making investors consider an economic slowdown in Europe and a decline in the demand for fuels. Then within a week the price declined down to $ 2,9627-2,9864 gallon. On May 22nd, the price rallied for up to $2,936-2,942 per gallon and made a sharp decline.
Therefore, the bears dominated the market of gas futures in May.
Tips For Investors: Will Gasoline Prices Drop?
The question is difficult to answer. The correlation between the gasoline futures and the retail sales of gasoline can be traced only in the USA.
The only thing we can say is that the bulls will most likely dominate the market within the next 2 months.
Market Leader and would appreciate if you could participate in a survey. Please, visit the Academy’s forum for traders and investors and answer the following question:
What is your near-term gasoline price outlook?
