March 6, 2021

Gas headed up, stocks headed down

GasBuddy says gasoline prices at the pump may climb past $3 a gallon by Memorial…

GasBuddy says gasoline prices at the pump may climb past $3 a gallon by Memorial Day, following a decision by OPEC and its allies to keep production curbs in place through April. The national average for regular unleaded hasn’t topped $3 since Oct. 2014. News of the production curbs sent oil prices rallying yesterday to their highest level since April of 2019. This morning, crude is trading around $65 a barrel.

 U.S. travel demand remains low even as tens of millions of people get vaccinated for Covid-19, with just 12% planning a spring break trip this year. The U.S. Travel Association says Americans remain wary about travel and that it is “far from clear when demand for travel will rebound on its own.” The industry again urged new tax credits to encourage leisure and business travel. The number planning to travel for spring break fell from 16% in a poll just a week earlier.

Futures are moderately lower after stocks tumbled yesterday. The Dow Industrials dropped 346, the Nasdaq fell 274 and the S&P 500 lost 51.