The largest ETF following gasoline futures is on a five-day losing streak and down more than 5% for the week. Lower oil and gas prices spell relief at the pump for consumers but also signal concerns about the global economy.
The $115.3 million U.S. Gasoline Fund (NYSEArca: UGA) was down 3.2% on Friday near its 200-day simple moving average, a level it hasn’t traded below in 2012.
The gasoline ETF has been trending lower since the beginning of April after spiking earlier in the year along with oil prices on Middle East supply fears. [ETFs Blamed for Rising Oil, Gas Prices]
Gasoline futures fell to an 11-week low Friday after the April employment report came in weaker than expected. Gas prices dropped below $3 a gallon. [Gasoline ETF Highest in Three Years as Prices Near $4]
“It’s the combination of weak economic data across the globe and the realization the market is well supplied,” said Phil Flynn, vice president of research at PFGBest, in a Bloomberg report.
The gasoline ETF was up 11% year to date heading into Friday’s trading.
U.S. Gasoline Fund
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