That sucking sound you hear is more money going directly from your wallet and into your gas tank. That’s right: Gas prices are once again on the move upward — just in time for your summer vacation plans.
According to AAA, a gallon of unleaded fuel hit an average of $3.70 today. That’s about a 3-cent increase from last week, but well up from the $3.52 a gallon recorded last month. Moreover, the automobile club predicts that gas prices per gallon will hit $3.75 by early summer before rising further during peak driving times.
The culprit? Lower supply here at home.
While energy companies aren’t allowed to export crude oil, they can export finished and refined petroleum products. And that means gasoline. Recent data from the Energy Information Administration showed that energy firms in the U.S. exported about 3.6 million barrels worth of gasoline a day last week, according to the Wall Street Journal. That’s an increase of about 25% for the same period last year. All in all, that’s crimped domestic supplies of gasoline down to their lowest point for this time of year since 2011.
Lower supply due to exports plus rising demand equal higher gas prices for you and me. Yet, you don’t have to take higher gas prices in stride. There are ways investors can hedge and profit from the upcoming pain at the pump. Here’s four ways to do just that.