Since the beginning of June, oil futures prices have been hovering around $30 a barrel, and since mid-June, we’ve seen retail gas prices get set at about $1.59, then drop slowly to about $1.39, and then reset to $1.59 on a Thursday. Unless something happens to oil futures prices the next two weeks, we can expect the pattern to repeat. So, no price hike this week, but a price hike next week. And I guess it will be on Thursday August 7. Well, there was a price hike “next week”, namely on Monday August 4th, and a big climb to $1.69. Oil futures did go up somewhat, but I have to label this prediction more WRONG than correct.
Month: July 2003
There will be a price hike this week, the question is when and how much. As for when, I’m just guessing here, but how about Wednesday. Tuesday is very possible, too. The new price will be at least $1.59. I’d say higher, but, again, I’m not sure if we are paying extra right now because it is summer. Prices went up on Thursday, mostly to $1.58. So, although not perfect, I think I was CORRECT.
Over the last two weeks, it is as if the Chicago Summer Premium has disappeared. However, at the same time, oil prices have been rising, now over $31 a barrel. (Who to blame: problems in Iraq, the Fed’s easy money policy?) With no summer premium, the zero-margin price today is $1.40. With a full 10-cent premium, it is $1.50, which is the current price at many places around town. I’m going to assume that there isn’t much summer premium right now, so prices will drift lower, and no price hike this week. There was no price hike. CORRECT!
With the added 10 cents for the summer, the 20-cent margin price is $1.67 this morning, while gas is selling for as low as $1.48 in town. Smells like a price hike is in the air this week, to $1.60 or higher. (I’d say more like $1.65, but I don’t know if Chicago wholesale prices are getting closer to New York’s right now.) We got a price hike on Thursday, mostly to $1.59, but I did see $1.60 in Standale, so color me CORRECT!