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
exchange traded fund (
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 Unofficial Summer Kickoff With ETFs.
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.
Driving Season Begins, Gasoline ETFs Sputter.
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.
Tisha Guerrero contributed to this article.