Gasoline prices hit a new record overnight as refiners slow down production ... When can drivers expect a break at the pump?
Gas prices roared above $3.75 a gallon Wednesday, while oil prices fell after an Energy Department report gave a mixed picture of the nation's petroleum reserves.
Gas prices typically peak around Memorial Day, then decline through the summer. But some analysts are beginning to question whether that will happen this summer, noting that oil priceshave doubled over the past year and show little sign of slowing their advance.
“I think we’re stuck in a range,” says Addison Armstrong, Director Of Market Research At Tradition Energy on CNBC’s Closing Bell. “We’re at $124 on the downside and $127 on the upside.”
“I don’t see any signs that China’s demand for fuel is going to slow down. That’s going to keep the gas and heating oil market hot. Unless the dollar gets significantly stronger against the euro I find it hard to believe we’ll see a meaningful pullback.”
If you’re looking to trade crude Armstrong doesn’t think you can play this market to the short side. “Unless you get a meaningful break and that would be about $115 you’ve got to be long,” he says.
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