Gas is $1.40 in Standale, still $1.36 in Allendale. With the Bush/Iraq situation pushing wholesale prices up, it seems the smarter thing to do is to fill up the tank, which I did in Allendale this morning. I think we are more likely to see higher prices by Friday of this week. CORRECT, with a hike to $1.48.
A student told me today he noticed that prices in Allendale and Cooperville have been flat all summer. In fact, gas is $1.36 in Allendale today (see below), while it is $1.45 in Standale. Maybe this is related to the construction on M-45, but I don’t know. Come get your cheaper gas in Allendale, and maybe the price will get back to $1.36 in Standale quicker.
Gas is $1.35 in Standale this morning. This has been about the place all summer where a price hike has occurred. (I note that the HU futures have been oscillating around $0.78 all summer.) So, expect a price hike this week, maybe to $1.49. CORRECT, although the hike was to $1.45.
I’ve been out of town. More on that tomorrow. What is the price of oil doing close to $30 a barrel? I think I will fill the tank this afternoon. I got gas for $1.36 in Allendale.
After yesterday’s price hike, to speculate as to what is next depends on whether to factor in the Chicago Summer premium. Without it, expect prices to drop over the next two weeks, down to $1.19 or so. With it, expect prices to drop to $1.29. NYMEX gasoline futures continue to drop in price. RIGHT? WRONG? I was in Cadillac last week, investigating gas prices there. Prices did not change the whole week! ($1.42 at the Clark station.) It doesn’t look like we dropped much in Grand Rapids, either.
Gas prices have been falling for two weeks, and it appears they will continue. I have been having trouble with my predictions lately for one reason: The August unleaded contract was trading 8 to 9 cents higher than the September contract, for no apparent reason. Now the August contract has expired. This means the 0-margin price (with the Chicago Summer premium) is about $1.29. Expect gas prices to fall to that price by next Wednesday. After that, we have to look at the futures again, but I expect we will then see a price hike to $1.49. By the way, the January 2003 futures imply a retail price next January of $1.15.
CORRECT, sort of! Prices got down to $1.35 in Standale, but below $1.30 elsewhere in town. Everything reset on Wednesday to $1.44, which is right at the 20-cent margin price, if you don’t factor in the Chicago Summer premium (see below).