You heard about Peak Oil back a long, long time ago in 2008. I’m sure most have already forgotten that time period as investors were told we were going to run out of oil. How wrong those experts were at that time as there were forecasting $200 or more oil prices to come. What happened is that crude oil peaked at $147 and then proceeded to crash to about the $34 price level.
This gasoline chart is on the output side of refineries and could be mixed with other blends to get the desired fuel. Aviation fuel is part of it, but the yearly switching to and summer demand is starting to happen. Of course, if we have a stock market crash, then demand can falter. Gasoline did not go to a new record high like crude oil did, so gasoline will have to have a separate wave count as a potential bear market in gasoline could be looming.
Just below the 2017 low, gasoline has one of the biggest open gaps, that I have seen on in a futures chart. This mother of all gaps will get closed once the bearish picture shows itself to more of the gasoline traders. For starters $1.84 must get retraced and then the $1.46 will also have to get retraced. That 2017 bottom would be a target price where a bear market can turn into a huge bull market again.
Any 4th wave bear market rally usually gets completely retraced, which means lows below 2015 should also happen. It will take some time before we can confirm anything. Commodities have the amazing ability to crash when the experts think it can never crash, so ample warning is prudent.
First this present wave 2 rally has to be retraced before we can jump up and down, looking for a 5 wave decline. Another full zigzag decline is also high on my list, which will need degree adjusting later on. (Minute degree wave 2).