To The Moon

There is a quiet trend of the gasoline price inching upwards.

Note the uptrend since Dec 2022.

Source: https://ycharts.com/indicators/us_gas_price

The US Retail Gas Price is the average price that retail consumers pay per gallon, for all grades and formulations. Retail gas prices are important to view in regards to how the energy industry is performing. Additionally, retail gas prices can give a good overview of how much discretionary income consumers might have to spend.

US Retail Gas Price is at a current level of 3.594, up from 3.519 last week and up from 3.421 one year ago. This is a change of 2.13% from last week and 5.06% from one year ago.

Recent US national average gas prices (from YCharts)

Here is the recent news about the inching gasoline price.

News extract:

Gas prices are rising to start 2023, and experts say prices are "unlikely to turn around any time soon." Today's average for a regular gallon of gas is $3.50, according to AAA. Though it's nowhere near the record $5.01 reached in June, it's far more than the average heading into New Year's Day and what prices were one year ago. Experts say the average price could reach $4 this year.

Gas demand has risen while the price of oil has slowly increased, AAA said Monday, citing data from the Energy Information Administration. Oil refinery utilization hasn't fully recovered from cold weather in December and the refineries typically perform maintenance in the coming months, said Patrick De Haan, head of petroleum analysis at GasBuddy.

Source: https://www.usatoday.com/story/money/2023/01/30/gas-prices-going-up/11150692002/

My investing muse

The creeping gasoline price should exert inflationary pressures on various industries from utilities, supply chains, food and more. So long, as goods & services require transportation, the increase in fuel costs would be “passed onto” the consumers. With the refineries yet to be back to full capacity, the US would need to rely on imports to make up for the shortfall between consumption and local refinery production.

The Chinese change in Covid19 policy would likely drive more consumption and thus, the oil price is expected to continue to rise accordingly.

Let us monitor closely as this would affect how the Fed will adjust the interest rates to combat inflation that results from the price increase.

@TigerStars

$ETFS WTI CRUDE OIL(CRUD.UK)$