Tags: gasoline | price | drivers | summer

John Kilduff: Drivers on Road to 'Hot, High-Priced Gasoline Summer'

(Andreblais/Dreamstime)

By    |   Tuesday, 15 May 2018 03:32 PM

Again Capital's John Kilduff predict that record-high gasoline demand and exports will combine with soaring crude-oil prices to create some sweaty pain at the pump for American drivers in the next few months.

Meanwhile, the highest gasoline prices since 2014 won’t stop 37 million Americans from clogging up the nation’s motorways next week as summer kicks off with Memorial Day weekend, Bloomberg reported.

National average gasoline prices are up about 50 cents a gallon from May of last year, AAA data show, at about $2.879 a gallon. Still, road travel is projected to rise 4.7 percent Memorial Day weekend, while air travel will rise 6.8 percent, AAA says.

"We could be on the cusp of a hot, high-priced gasoline summer," Kilduff recently told CNBC.

U.S. gasoline prices commonly jump right before the unofficial start of summer, Memorial Day. After that weekend, gasoline prices usually slip after the market realizes there's adequate stockpiles of fuel in storage tanks, Kilduff explained to CNBC.

However, Kilduff warned that this year might break the trend because drivers are consuming a record level of gasoline at a time when U.S. gasoline exports have hit all time-highs above 2 million barrels a day, CNBC explained.

Rising gasoline prices are slowly but surely affecting other economic aspects.

Data on Tuesday showed U.S. retail sales increased marginally in April as rising gasoline prices cut into discretionary spending, but consumer spending appeared on track to accelerate after slowing sharply in the first quarter.

Fuel costs aren’t high enough to deter travel, according to Bill Sutherland, senior vice president, AAA Travel and Publishing. “A strong economy and growing consumer confidence are giving Americans all the motivation they need.”

(Newsmax wire services contributed to this report).

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Again Capital's John Kilduff predict that record-high gasoline demand and exports will combine with soaring crude-oil prices to create some sweaty pain at the pump for American drivers in the next few months.
gasoline, price, drivers, summer
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2018-32-15
Tuesday, 15 May 2018 03:32 PM
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