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Gas Prices and Stockpiles Increase, Technical Outlook

by on December 9, 2013 2:49 am GMT
 

The average price for gas in the US increased 2.73 cents within the last two week to $3.2790 a gallon, according to Lundberg Survey Inc. data. The data incorporated prices from roughly 2,500 filling stations, and gas prices are 9.61 cents lower that the year prior.

California is notorious for high gas prices, partly due to over 40 cents in federal and state taxes. Los Angles was reported to have the highest gas price in the US at $3.61 per gallon; the lowest price was in Tulsa, Oklahoma at $2.84 per gallon.

The gasoline inventory data for November 29 indicated a 1.83 million barrel increase in gas stockpiles, according to the Energy Information Administration (EIA). Total stockpiles reached 212.4 million barrels.

Gas futures seen a jump in prices as positive labor force data is reported out of the US. Analysts believed the increase in employment will increase demand for gas as newly employed drive to and from work. Refineries also increased their productivity to over 90 percent of capacity.

The weekly chart, expanding five years out, shows price respected a well defined support level at $2.4913, and price has been up four of the last five weeks. The 200 EMA has acted as dynamic support for continuation of the uptrend.

This week’s price has opened above the 20 EMA. The near-term resistance lies at $2.7728, and the 50 EMA will  provide further resistance just above $2.8 per gallon.

WK Chart of RB

WK Chart of RB