While most of the energy sector focus is on oil (/cl), it’s the gasoline futures (/rb) which are nearing the next big level.
Zooming out to the monthly chart on /rb, we see that price has already traded beneath the lowest monthly close of from the 2008-09 crash (Dec. 2008, white dash line) at 1.062.
The next target is a big one, as in 1.00 even (blue solid line). That’s a price not seen since January 2009.
Beneath that we have the 2008-09 crash low of 0.785 hit in December 2008.
There is no sign of slowing the downward momentum, which means certain parts of the county could see $1.00 or lower gas prices at the pump should we re-test that 2008 low.
The one factor which will come into play starting with the March contract will be seasonality, and the general drift higher of gas prices into the Summer driving season.