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Gas Price Forward Curve Drops to New Lows

According to our most recent analysis of the RBOB Gasoline forward curve, gasoline futures are trading lower than they have at any time in the last 6 months.

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It is unknown at this point whether prices have bottomed or will continue to fall in the months of January and February. What is clear is that, after meandering in the late fall, gas prices have finally dropped substantially in accordance with cyclical expectations.

This change in futures markets coincides with a drop in wholesale gasoline around the United States. CNN reports:

“The national average price has dropped every day this month and has fallen 16% since mid-September. It is now at the lowest average price since Dec. 28, 2011, and only 4 cents shy of the December 2011 low of $3.206 a gallon.”

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