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Unleaded Gas Seasonal Trend

By January 28, 2013

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Unleaded gas futures have been moving solidly higher in the last couple weeks. The support has certainly come from the oil market, but gasoline has actually been stronger.  Even though the market has had a nice run recently, the seasonal buying trend is just around the corner.

Unleaded gas prices tend to rise in the middle of February until the end of May.  The reasoning is that the wholesale buyer have to buy ahead of the summer driving season.  To the surprise of many novice traders, gasoline prices typically peak at the beginning of the summer driving season.

This pattern doesn't hold true every year, but it is a strong seasonal tendancy.  With prices already rising ahead of the seasonals, unleaded gas prices could move much higher in the coming months.

 

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