Saturday, March 17, 2012

Citigroup Chief Commodity Trader: Gasoline is Headed for $5.00 per Gallon

Four dollar plus gasoline looks like it is in the bag for across the United States. WSJ writes:
Gasoline futures on the New York Mercantile Exchange are up 22% this year, and settled Friday at a 10-month high of $3.3569 a gallon. Average pump prices tend to follow futures by a few weeks, averaging about 70 cents a gallon more, after taxes and transport costs. Based on futures, retail prices should average above $4 a gallon soon...Prices could head to record levels, potentially as high as $5 a gallon in coming months, said Ed Morse, global head of commodities research at Citigroup Inc.
Note: This is all about Bernanke printing money. Overall demand has fallen in the U.S for gasoline and is expected to hit an 11-year low this year.

1 comment:

  1. This is NOT about Bernanke printing money. He has been doing that for years. It is all about Obama pandering to Israel, the tail that wags the dog, and threatening a war with Iran. Unnaccountably, the market believes him, (Why should he start telling the truth all of a sudden NOW?) and is factoring its nervousness into the future price of oil.

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