In many parts of town, the retailers continue to give us a break on gas prices, with prices as low as $1.65 this morning. Yet, futures prices have stayed about the same for a few weeks. So, it is clear to me that we get a price hike this week, and I wouldn’t be surprised if it happens today. The new price will be in the upper $1.90’s. Only a few hours after my posting, gas prices went up to $1.95 or so, so the prediction was CORRECT, but was it helpful?
Month: July 2004
Although futures prices have fallen a bit this week, if there weren’t a number of places in town in the low $1.80’s, I would say no price hike for the rest of the week. The way things are, there could be a price hike, and some places wouldn’t even change their prices. So, no prediction. No price hike, and gas prices continued to fall, to as low as $1.65.
Oil and gas wholesale prices were actually pretty stable last week, according to NYMEX. I’m really confused about the disappearance of the Chicago Summer Premium. Don’t get me wrong — lower than expected gas prices are great — but I’m wondering who is losing their profit here — the retailers, the refiners, or I don’t know who else? In addition, today we have gas prices ranging from $1.75 to $1.99 in town. So, I am finding this quite unpredictable right now. We’ll check back later in the week.
It seems that for the past month or so, retailers have been less enthusiastic about higher prices. Last week’s price hike, for instance, suggests a 2-cent Chicago Summer Premium (usually 10-cents at this time of year), and the price hike did not quickly spread around town. Then prices fell quickly over the weekend (8 cents in one day in Standale), and you can buy gas for $1.82 a gallon at the moment. However, futures prices keep rising, which means they’ll reset the prices again this week, to around $2.08. 1/2 CORRECT, 1/2 WRONG. Prices reset on Thursday to $1.99, not $2.08.
I am predicting a price hike for Wednesday or Thursday to $1.99 or so. Futures prices have been climbing for a week. Absolutely CORRECT, as prices rose to $1.99 on Wednesday at Speedway, and then elsewhere.