Gas Prices Become Troublesome - Make Money From It

The chart shows the price of gas during the week of March 12 and as you can see this year it is higher than it has been the last 17 years. There are several comparisons we can make to determine if the price of gasoline is affecting the economy and the consumer. But this chart tells the story because it compares the same week every year. Wait until the summer driving season is here and get ready for $4 is not much higher gasoline.

Then there are the outside factors such as Iran that could catapult gasoline higher. But a bigger concern should be an increase in demand. If the economy continues to improve, demand will increase and therefore so will the price. That is until it gets to an unsustainable price!!

Investors can look to stocks and ETFs to play higher gas prices. The most direct play is the US Gasoline ETF ($UGA) that tracks the front month gasoline futures. The ETF is trading at its best level in over three years and could see higher prices with the current environment setup for the trend to continue.