US gasoline prices continue to rise
The 2 major reports on national gasoline prices shows that the cost per gallon continues to rise.
This comes at a time when the US consumer needs as much discretionary income as possible as the holiday season approaches.
The Lundberg Survey reported that, over the past 2 wks, the average price of a gallon of regular gas nationwide rose 7.85 cents to $3.8376.
Data released by the analysts at the AAA Fuel Gauge put the price at $3.828 Sunday, compared to $3.685 1 month ago.
The increase comes at an inconvenient time. US consumers and business owners have spent weeks reading about the "Fiscal Cliff."
That event has created anxiety, prompting increases in caution over spending. And with the holiday season, which is a "make-or-break" period for retailers, beginning in 6 wks, sales could come in worse than expected.
There are a number of reasons gas prices should go down in here; Hurricane Issac has come and gone.
There are no other major disruptions in the supply chain worldwide.
The worry about Iran's reaction to sanctions because of its weapons programs has been less disruptive than feared.
Exports from other large Crude Oil producing nations remains steady. And a slowing global economy should lower demand for Crude Oil.
But rising gasoline prices are not soon likely to see a sharp reversal, based on the history of those prices, thus, adding another financial burden to the economy as the end of the year approaches.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.