Gas Prices Going Up?

Are you enjoying the lower gas prices? Many analysts think the low is in and we might drift up a bit. Many years, around this time it is a good time to book diesel fuel becaue we tend to put a seasonal low during February. It was not long ago gas was $3.50 a gallon at the pump.

Every Wednesday in the Midday Market Report, Marv mentions the Energy Information Report. It includes crude oil, gasoline and diesel fuel inventories. Week after week we would see inventories building, yet prices kept going higher. One of the reasons was "money flow." Traders and investors that held futures contracts were getting a nice return on their money. Others would see the return and they would buy futures contracts, too. I just kept thinking what ever happened to the basic economic principle of supply and demand? Markets can ignore economic principles for a time, but eventually they take over. Then prices can move in the other direction very quickly.