Over Memorial Day weekend, gasoline prices hit the highest for this holiday weekend since 2014.1
With the Colonial Pipeline outage in the rear-view mirror and an ever-increasing number of adults vaccinated, formerly cooped-up motorists made the most of what America has to offer. The average price jumped to $3.04 per gallon ($1.08 higher than last year’s lockdown prices) and oil prices have continued to demonstrate high demand in the week following. The Wall Street Journal noted a two-year peak on June 1, indicating prices exceeding 2019’s records.1,2
It’s not just prices at the pump that are increasing.
Crude oil, as shown in the chart below, is also showing a strong recovery from last year’s lows. This chart dates back to 2003, and shows just how high prices were in the early 2010’s.
The rise in prices signal two things:
- Inflation is coming back. We discussed this in our report last month titled “The Coming Inflation Wave(s)“.
- Post-COVID life is returning. These new peaks are a sure sign that things in America are returning to something like a pre-COVID normal. While there’s still a way to go, these indicators point to something like the world we once knew.
While we’ll all miss the cheaper prices at the gas pump, it stands to reason that as we begin to emerge from this unprecedented period, that there’s a summer out there to be enjoyed. You might be taking advantage of the weather, but we’re still working for you. Let me know if you have any questions about these developments and how they might affect your financial strategy.
|1. CNBC.com, May 27, 2021|
2. Wall Street Journal, June 1, 2021
|The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.|