Gas Poised To Fall Below $3 A Gallon: But Spare A Thought For The Heavily-Priced Europeans
Portfolio Pulse from Neil Dennis
U.S. gasoline prices are expected to fall below $3 a gallon by Christmas, a level not seen since May 2021, as wholesale gasoline prices drop below $2. The United States Gasoline Fund (UGA) ETF, which tracks gas prices, was up 2% at $59.30 despite the fall in pump prices. Oil markets are known for their volatility, and while U.S. consumers may benefit from lower prices, Europeans are facing much higher costs, with prices over $7 a gallon in the UK and France.
December 08, 2023 | 6:01 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
The United States Gasoline Fund (UGA) ETF saw a 2% increase to $59.30, even as retail gasoline prices are expected to fall. This could indicate a divergence between the ETF's performance and retail gas prices, potentially due to market speculation or other factors influencing the ETF.
UGA's rise despite falling retail gas prices suggests a short-term disconnect that may be influenced by market speculation or other factors. However, if retail prices continue to drop, it could eventually put downward pressure on UGA as the ETF tracks wholesale gasoline prices, which have fallen below $2 a gallon.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80