U.S. Gasoline Prices Reach All Time High
As Jim Cramer once famously said, “There’s always a bull market somewhere.” Before we get into it let it be known that he infamously called the oil top back in November, to which it subsequently rose 53% in the coming months. I’ll give him the benefit of the doubt though, I don’t think the Russian troops had mobilized at Ukraine at that point in time, so we’ll give him that.
Anyways, back to the fun stuff (quite the opposite, actually). Monday evening, Oil Price Information Service, which calculates prices for AAA, reported that the cost of a gallon of gas stands at $4.14 a gallon (CNN reported), the highest it’s ever been. This trumps the previous record of $4.11 a gallon during July of 2008. That was right before things started getting real hairy during the GFC. The record $4.14 reported by CNN is subject to change, because it’s calculated as of close of business on the East Cost. However, according to their report, any revised number would almost surely be revised higher, not lower.
Oil futures Sunday night traded as high as $138, before settling down around $124 Monday evening.
While purely anecdotal, even with higher gas prices rearing its ugly head, as of recent there has been much more focus on rising gas prices. According to Tom Kloza, the global head of energy analysis for OPIS, stated in an interview with the New York Post, “Until further notice, you’re going to get increases of five to fifteen cents a day, maybe more.”
Virtually every other asset class (aside from commodities), continues to take a beating. The S&P closed down nearly 3% during Monday’s trading day, and prices amongst major cryptos were also bleeding. Monday’s trading session was an absolute bloodbath. In a recent article by yours truly, I warned about the potential headwinds that we face given current market and macro conditions. This surmises things almost perfectly.
Buckle up, ladies and gentlemen. We are likely in for a proverbial rollercoaster ride.