How much is this impacting the consumers? $3.80 per gallon for regular gasoline and that is down 10 cents from a week ago. The jump of 40-50 cents per gallon acts as a tax on the consumer and this happened while the price of crude oil has dropped nearly 10%. The refiners are on winter maintenance schedules and that has caused an artificial shortage. It has hit some areas of the country more than others, but the impact is real regardless on the consumer.
The chart below of UGA shows the impact of gasoline prices at the wholesale level. After topping out at $65.70 the ETF has moved back to support near the $60.50 level and held. Is that the end of the pullback or reduction in gasoline prices for the consumer? Only time will tell, but many analyst believe we will see price recede further as we move towards the spring.
The bigger question for me is how do we make money from this dilemma so we can buy gas for our vehicles. Two ideas and both of them are posted on the ONLYETF Watch List. Click the link to go directly to the post of both opportunities.