I've expressed skepticism about the ability of oil and gasoline prices to make higher highs, even though there can be theoretically higher targets based on mathematical Fibonacci retrace levels at higher levels. Below is one of my gasoline price charts. Then next will be the free "Chart of the Day" of this week, which also is looking at this.
Chart of the Day
August 14, 2009
One positive outcome of the financial crisis was that gasoline prices did plunge from their record highs – down 60% peak to trough. Beginning at the end of 2008, however, gasoline prices have surged and are currently 61% above their December 2008 lows. Today’s chart provides some perspective on the recent spike with a long-term view of the average US price for a gallon of unleaded gasoline. It is interesting to note that most gasoline price spikes were a result of Middle East crises and often preceded or coincided with a US recession. So while gasoline prices are currently well below the record high levels of 2007, this recent rally has brought prices to a level well above what was witnessed from 1984-2004 – a two decade span of relative energy price stability.
Chart of the Day is provided to subscribers without warranty of any kind and accepts no responsibility for its accuracy or for any consequences of its use. Journalists and bloggers may post the above free Chart of the Day on their website as long as the chart is unedited and full credit is given with a live link to Chart of the Day at http://www.chartoftheday.com.
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