This summer ended with two major problems for the global market of energy carriers. Tropic storm Isaac hit the Southern coast of the USA while the South American market is still trying to recover after the recent fire in the Amuay refinery (Venezuela ).
The US market responded with a major decline in the supply of the fuel as well as a 2.5% price increase. What to expect next? The experts of will try to answer this question…
August Outlook
According to and MIG Bank, the overall bias was bullish in August. As of July 25th, the gasoline futures started rallying from $ 2,704-$2,712 per gallon amid the Federal Reserve’s intension to maintain the current interest rates around 0-0.25% and an emergency at a local refinery in Richmond. Later the prices reached $3,108-$3,151per gallon. Obviously, there were short-term minor retracements. The overall bias remains bullish today.
The chart below, courtesy of , reflects the current state of affairs in the market of gasoline.
Another Price Rally Ahead?
According to the experts of gasoline prices will most likely see a further rally amid shorter supply and reserves. Taking into account the preceding rally, the prices won’t probably be fluctuating within a wide range.
