Well, the first letter to the GR Press appeared on Friday, but prices continued to drop, as low as $1.54 this morning in some places. (Although they are near $1.70 elsewhere.) Frankly, despite predicting a rise to $1.79 two weeks ago, I was surprised when it happened, as my spreadsheet calcuations were suggesting $1.69. Figuring some new 10-cent Chicago premium was in play, that’s why I thought we’d see $1.79 again last week. Forgetting that now, my calculations indicate if a price hike occurs this week, the new price will be $1.69 or so. However, some stations are close to that now, so I’m not sure what to think. Hmmm, that means fill the tank! Today! More or less CORRECT, as prices rose on Tuesday the 25th, but they went up to $1.79. Then, on Thursday, there was a ten-cent drop, which I found a bit bizarre.
Month: February 2003
I have a bad dream last night, where gas stations start quoting prices by the half-gallon, and I dream of prices like $1.20 a half-gallon. I hope that doesn’t happen soon. Speaking of happening soon, when do we start to read the letters to the GR Press, complaining about the price of gasoline? Oil futures went up again last week, but gasoline futures went down slightly, at least in New York. I don’t know if the same was true in Chicago. Prices are all over the place right now, with some Speedways down to $1.66, but other brands still at $1.79. I’m guessing they all reset to $1.79 on Tuesday or Wednesday. However, anything could happen if we start bombing Baghdad this week. Despite refinery fires and a spike in oil prices, I was WRONG about prices going up to $1.79.
Oil and gasoline futures continued to rise last week. In particular, gasoline futures jumped 9 cents in a week. So, I expect to see a price hike this week, to a stunning $1.79 (with premimum for $1.99). CORRECT! Prices went up to $1.79 on Tuesday the 11th.
Too much Iraq news coming up this week to make any sort of prediction about the futures prices. Futures did jump last week, translating into a pump price of $1.65, which I think we will see this week. A clue is the way prices have not fallen much since the last jump. CORRECT! Prices reset everywhere to $1.69 on Tuesday, then drifted lower. I found gas for $1.61 in Jenison on Sunday.