After posting an impressive rally that started in mid-to-late June, the rally in crude oil appears to have stalled- at least for the time being.
Crude prices stood at $93.69/bbl as recently as June 21, with prices seemingly peaking on July 10 at $106.52/bbl. The $12.83 advance between those two dates brought crude to its highest close in well over a year, and with it, gasoline prices have been racing higher.
However, crude prices have stalled in the last few trading sessions, staying below their recent $106.52/bbl peak, dropping to $105 and holding there over the last three trading sessions.
Retail gasoline prices have some distance to cover to match the rise in crude oil prices, and so even as crude prices now hold near their high, gasoline prices will likely continue to advance.
Crude prices opened Monday slightly lower yet again, showing that perhaps the bulls are running out of steam for the time being- that is unless there's something new and significant in Egypt or a large decline in crude inventories. I expect the national average to continue higher this week in both Canada and the U.S. with prices in the U.S. rising to an average of $3.68-$3.73 by next Monday.
Motorists across virtually all of Canada and the U.S. will see their prices move higher this week, but towards the end of the week prices may show signs of slowing in some areas pending Wednesday's all important EIA report.