Gasoline price spiking upwards

Yesterday alone, the retail price of gasoline spiked up almost 4 cents. The AAA Daily Fuel Gauge Report show that the national average retail price for a gallon of regular unleaded gasoline has risen to $1.727, 12 cents above its recent low of $1.60.

February RBOB unleaded gasoline futures are at $1.1879, indicating that retail prices are headed for $1.78 to $1.83 within a few weeks, about 10 cents above 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 new trend back above $2. But, since crude oil is about 37% above its recent low, gasoline could continue to see some upwards pressure unless the price of crude oil declines.

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