The Sweet Spot in a Gas Market That Wants High Prices
How long can this go on? That's the real question. At some point lower demand has to result in lower prices. But lower demand must be sustained. Reuters writes that, despite today's prices, demand for gasoline is slightly higher than it was at this time last year.
So the power over gas prices remains with the consumer. Hit the brakes and prices will plummet. Keep them on, while supply continues to increase, and prices will stay down. The pusher has no reason to give the addict an even break -- only the addict can stop their addiction.
Until then, however, buy refinery stocks. And while you're add it, buy infrastructure companies. I have some Kinder Morgan Partners (KMP) . The profits will fill your tank and that's what matters most, right?
At the time of publication, the author was long KMP.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.