Those evil oil companies have done it again.

They made another summertime holiday more expensive.

Labor Day weekend is coming up. It marks the end of the summer driving season.

It’s the last chance for your local gas station to gouge you before the traditional post-Labor Day plunge in oil prices.

It’s a trend as reliable as the sun rising each morning…

The price of oil tends to rally going into each summertime holiday. It then starts to fall when the weekends are over.

Of course, it’s a simple function of supply vs. demand.

Folks like to travel during three-day weekends. So, the price of oil goes up as demand increases just prior to the holidays. Then, once the festivities are over, demand starts to fall and the price of oil declines as well.

You can see it clearly on this chart of West Texas Intermediate Crude (WTIC)…

The price of oil rallied going into Memorial Day this year. It fell sharply afterwards.

Oil rallied again ahead of the Independence Day weekend. While the pullback was somewhat mild afterwards, the price of oil still fell once the weekend was over.

Now, oil is rallying again as we head into the final summertime holiday of 2023.

But, if the action plays out similar to how oil behaved during the same time last year, the price should be lower in the days and weeks ahead.

Granted, last year’s price decline came when oil was trading at a much higher price. So, perhaps this year’s fall won’t be quite as severe.

But, it should still prove profitable for traders who are willing to bet on a decline in the price of the gooey black stuff.

Or, at the very least, folks should consider waiting until next Tuesday or Wednesday to fill up their tanks.

Best regards and good trading,

Jeff Clark

Are you traveling anywhere for Labor Day weekend?

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com.