Posted in: Default,
by Patrick DeHaan on Aug 3, 2009 10:16 AM
Retail gasoline prices will continue their rise this week, extending on last week's wholesale price gains. Currently, the U.S. average sits at $2.54, up just four cents since last week while the wholesale market has gained close to 25-cents. This means that retail pump prices will continue their climb higher, following higher wholesale costs.
Prices continue to ignore traditional fundamentals and instead seem to be focusing on positive earnings news and good unemployment results from the U.S. government. This could eventually be good for consumers if traders believe the market rose only as a result of bullish sentiment, and the market makes a correction. At this point, it seems like the only direction for oil and gasoline prices is higher.
This week, the U.S. average will climb to $2.59 by weekend, and Canadian prices will continue their trend higher, rising to $1.02/L or higher. Consumers should be on guard knowing that prices will continue to rise sharply and shop for the cheapest fuel on GasBuddy.com.
Senior Petroleum Analyst