Summer is winding down. But before it can officially be called, we need to get through Labor Day weekend. In these savings-crazy times, will enough people hit the road to drive the gasoline ETF upward?
There’s no time like Labor Day to get behind the wheel, and low prices could be enough to get more drivers on the road and give the gas ETF a much-needed lift. Craig Schneider for AJC reports that there is actually good news at the gasoline pump this time around. The average metro Atlanta gas price is $2.53 a gallon, down 9 cents from a month ago and well below the national average of $2.67 a gallon, according to AAA.
The price drop comes as the summer driving season ends, and gasoline supplies remain nearly 12% above the five-year average with overall demand below pre-recession levels, says analysts.
According to Hugo Martin and Ronald White for The Los Angeles Times, Southern Californians are also going to come out in droves to take a drive this holiday weekend. The dropping price of gas is definitely an incentive, as 91% of the 2.5 million Southern Californians who plan to travel for the holiday weekend will get behind the wheel of a car, a 4% increase over last year, says AAA.
Just how will the actual end of the driving season affect gasoline ETFs? This one’s an unknown quantity. Gas prices are depressed now thanks to a supply glut. If demand spikes, the effect will not be known until next month.
- United States Gasoline (NYSEARCA:UGA) could use a boost; it’s down 8.9% in the last month alone.
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Tisha Guerrero contributed to this article.