Gasoline

From Chart of the Day:

The price of a barrel of crude oil has traded sharply higher over the past 4 1/2 months and currently trades above $91 as a result of continued geopolitical tensions and oil suppliers struggling to keep up with demand. With oil prices trending higher, it is not all that surprising to find that gasoline prices are following suit. Since the financial crisis lows at the end of 2008, the average US price for a gallon of unleaded has risen $1.42 per gallon. When adjusted for inflation, gasoline prices are once again above three dollars per gallon -- a level not often seen over the past three decades.

My comment: I know I've said this before and I'll repeat that oil, which is the prime component in gasoline never managed to crack below the $60 per barrel range during what many consider the worst recession since the Great Depression. If oil can't go lower than that during some of the worst economic times on memory then where is it going as the world's economies pick up and demand improves. Expect to see gasoline above $4.00 a gallon in the next 12 months!

The increase in gasoline prices is one of the reasons I'm bullish on "Green Technologies". People will become more interested in conserving energy the more higher prices affect their pocketbooks.

*Long ETFs related to oil, clean energy, oil drillers and oil exploration in client and personal accounts. Also many of these companies are components of major indices that we own for clients and personal accounts.

Link: gasoline.