U.S. Gasoline Fund (NYSEArca: UGA) has jumped about 23% over the past three months with the average price of gas rising above $4 a gallon in five states.
The exchange traded fund (ETF) could see further gains with some analysts calling for a 40% increase in gasoline prices to hit this spring and into summer, just in time for driving season.
Ruth Mantell for MarketWatch reports that the Energy Information Administration, the statistics arm of the Department of Energy, is calling for an $825 rise in gasoline spending per average household this year, hitting $3,360 in this year.
According to the Associated Press, the rapid increase at the pump follows a parallel rise in oil driven by turmoil and supply concerns in Libya.
The gasoline ETF follows futures contracts rather than the spot price.
U.S. Gasoline Fund
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.