Comment on the February 2 prediction: Prices continued to fall that week, although I don’t think we got to $1.99. Basically CORRECT. Then we say a pair of hikes the past two weeks.
Sunday, February 23, 2020, 2PM: Prices rose to $2.55 in Michigan last Tuesday (February 18), but that hike seemed fishy. Yes, markets were suggesting over the President’s Day weekend that higher energy prices were in the works, but not with the vigor that justified a hike. It felt like someone at Speedway was overreacting, and given that we are already back in the $2.30’s around west Michigan, it does seem like it was a premature push of the button.
So, where are we today? I am estimating the 0-margin price in the mid $2.30’s, and this is supposed to be the time of year where retail prices are more buoyant. I’m expecting a price reset this week, in the $2.49-$2.55 range, but probably not on Monday.