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Saturday, June 21, 2008

Gasoline Charts

Sorry I didn't post yesterday. I was too busy A) working on my new oil report and B) appearing on Fox Business News. And yes, the new oil report is free for subscribers to Red-Hot Canadian Small-Caps and Red-Hot Global Small-Caps. Anyway, here is a chart from that you'll find interesting ...As the folks at Chart of the Day explain ...
China announced that it would increase both diesel and gasoline prices. As a result, the price of crude oil dropped $4.75, but still trades above $130 per barrel. With oil prices continuing to trade at historically high levels, it is not all that surprising to find that gasoline prices are following suit. Over the past four months, the average US price per gallon of unleaded has risen over one dollar per gallon. When adjusted for inflation, gasoline prices are at record highs and 18% above its old inflation-adjusted peak of 1981. Also, as illustrated by the today's chart, gasoline prices have spiked above a trend channel (see red line) that has been in existence since the beginning of the century.
High gasoline prices have led to a drop in US gasoline use, which has dropped 1% since January from last year. You would think that would lead to lower oil prices, but surging demand in emerging markets will more than make up for our tiny price-force conservation, as this Wall Street Journal story explains ...

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