By Guest Author: Robert Williams, PhD, P.E.
Are gasoline prices headed higher? It’s very probable if you consider the previous 2008 history, the fact that OPEC is announcing that they are cutting crude oil production and refiners have to start producing the summer month’s gasoline inventories. When will the unleaded gasoline prices increase further is an educated guess based on the UGA ETF chart shown below. UGA prices appear to have tested the resistance level a number of times. A UGA quote at time of writing is $23.10 up 3% with almost twice the daily volume. Could this be the chart breakout that will lead to higher prices? Time will tell.
This is the unleaded gasoline price dilemma – if we buy UGA on the breakout and the price keeps going up then you will have a good return on your investment. But, you will also be paying much more at your local gas station to fill up your gas guzzling SUV which