Tuesday, March 27, 2007

Gasoline Futures Hit 7-Month High

From IBD:

April gasoline rose 6.94 cents to $2.0677 a gallon, its highest since Aug. A BP refinery in Indiana is running below pace after a small fire there, reports say. That's the latest in a slew of refinery woes. Crude rose 63 cents to $62.91, a 3-month high amid rising tensions with Iran, OPEC's No. 2 producer. Retail gas prices are up 42 cents in the last 7 weeks to $2.655 a gallon.

Here's a daily chart of gasoline prices.

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While that chart looks like prices are out of control, notice in the chart below the seasonality of gas prices. Gas prices this year (denoted as #2) are more or less following the same pattern as last year (denoted as #1). Gas prices typically spike in the summer.

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