Gas prices are shooting higher, leading to predictions consumers may be looking at $5 a gallon later this year. [Gasoline ETFs to $5 a Gallon?]
U.S. Gasoline Fund (NYSEArca: UGA) is up nearly 20% year to date. [Gasoline ETF Surge Reflects Pain at the Pump]
“The ‘tax’ higher gas prices have on consumption is measurable. At the moment, the offsets are a warmer-than-usual winter lessening the burden of higher heating bills, and an improving labor market,” Luschini wrote.
“So while filling the tank may cost a bit more, the aggregate economic impact has not yet been that impactful on a comparative basis,” the strategist added. “That said, at some point, staring at $4 per gallon of regular unleaded, a sight already found by drivers in some states, could have an unpleasant psychological, if not economic, impact.”
U.S. Oil Fund
