THE WALL STREET JOURNAL

 

January 27, 2015, 10:46 AM ET
U.S. Gas Prices End Their Record-Breaking
Streak of Daily Declines

By Ben Leubsdorf


For the first time in four months, gasoline is a little more expensive today than it was yesterday.


The national average price for a gallon of regular gas was $2.038 on Tuesday, up from $2.033 on
Monday, according to auto club AAA. That half-cent increase was the first overnight price rise
since Sept. 25 and ended the longest streak of daily price declines on record.


AAA said on Monday that prices have slowed their decline in recent days, “largely reflective of
a number of Midwestern states where prices have moved higher over the past week due to a
series of refinery issues in the region.” The winter storm in the Northeast could briefly send
prices higher on worries about distribution, AAA said, but “the longer-term impact is expected to
be downward pressure on pump prices from lower demand, as drivers stay off the roads.”


Still, gas is cheap by many measures — it’s $2.044 per gallon as of Monday, according to the
U.S. Energy Information Administration, the lowest average price since April 2009. That’s
benefiting both U.S. consumers and businesses, though it’s testing the domestic energy boom.


AAA said gas prices should rise this spring “due to seasonal demand and maintenance,” but that
barring a spike in crude oil prices, gas shouldn’t breach $3 per gallon this year.


FUTURES AND OPTIONS TRADING INVOLVE SIGNIFICANT RISK OF LOSS AND
MAY NOT BE SUITABLE FOR EVERYONE. OPTIONS, CASH AND FUTURES
MARKETS ARE SEPARATE AND DISTINCT AND DO NOT NECESSARILY
RESPOND IN THE SAME WAY TO SIMILAR MARKETS STIMULUS. A MOVEMENT
IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE
RELATED FUTURES & OPTIONS CONTRACT BEING OFFERED. SEASONAL
DEMAND AND CURRENT NEWS IN COMMODITIES ARE ALREADY REFLECTED
IN THE PRICE OF THE UNDERLYING FUTURES.