Gasoline price continues spiking upwards, but may stabilize and decline soon

Yesterday, the retail price of gasoline spiked up another 2 cents. The AAA Daily Fuel Gauge Report show that the national average retail price for a gallon of regular unleaded gasoline has risen to $1.782, 18 cents above its recent low of $1.60.

But, wholesale gasoline futures have declined lately, with February RBOB unleaded gasoline futures at $1.0728, indicating that retail prices are headed for $1.67 to $1.72 within a few weeks, about 10 cents below the current price level.

Still, this latest move of the past week is likely to be simply gasoline trading in a range rather than a major new trend. The price of crude had spiked upwards recently, but lately has given back a big chunk of those gains.

Gasoline below $2 continues to mean more cash in the pockets of consumers and less pressure on their budgets as well as the budgets of businesses and governmental entities. It also means more traffic on the roads.

-- Jack Krupansky