Gas prices in the US rose 4.9 cents per gallon in the last two weeks, according to Lundberg Survey Inc. The national average has reached $3.6065 per gallon, the highest level since late July. The survey covers up to April 4 and contained data from roughly 2,500 filling stations.
According to Lundberg’s President Trilby Lundberg, “in general, the uptrend has been losing steam.” Although, Lundberg said that demand has been higher than the same period a year ago. The data from the Energy Information Administration showed that gas inventories fell 1.57 million barrels in the week ending on March 28, bring the total to 215.6 million. This was the lowest since last November, and gas inventories have declined 7.6 percent in six weeks of consecutive declines.
RB gas futures seen a pullback in early Sunday/Monday trade, but price action broke out to the 61.8 percent Fibannaci retracement from the 30-day high. A breakout through this level can send gas futures to $2.9682 per gallon. However, price action stacks up well against the Fibonacci resistance. If momentum wanes going into this week’s inventory data, the 50 percent level will be tested at $2.9162 with potential to reach $2.901.