Futures prices have dropped a lot this week, so expect retail prices to follow. I predict no price hike until after November 7, and we should see prices below $1.90 by a week from today. I was absolutely CORRECT about no price hike, but prices sure have been taking their time going down. On Friday, November 5, the cheapest in town was $1.95, so that latter part of the prediction was WRONG.
Month: October 2004
Although the media is buzzing about $50 a barrel for oil, wholesale gas prices, according to NYMEX, are rising just a bit, putting the 20-cent margin price this afternoon as $2.07. The cheapest price in town is $1.92, suggesting a 15-cent price hike is coming later this week. But elsewhere, prices are still $2.04 or so. Nevertheless, I think the media buzz leads to a price hike on Thursday to at least $2.06. The price hike didn’t come until the following Monday, to $2.09. Technically WRONG.
It is the perfect set-up for a big price hike today or tomorrow. While gasoline prices have dropped to $1.91 or so around town, future prices on Friday hit a new high for the year, suggesting a new price of around $2.15 is imminent. Two hours after my posting, prices rose to $2.15. Wow, now that’s CORRECT!
Ahead of the weekly report on gasoline stocks, I am rescinding my Monday prediction and just having no prediction right now. There was a decent drop in wholesale prices on Monday, putting the 20-cent margin price at about $2.07. Many places are at that price right now, but some are at $1.95, so I just don’t know what to predict for the rest of this week. Good thing I took that prediction back — there was no price hike on Wednesday or Thursday.
This morning, crude oil is about $55 a barrel, and wholesale prices are about $1.40 a gallon. That corresponds, with a 20-cent margin, to $2.13 a gallon. The cheapest gas in town is about $2.00 a gallon, and that 13-cent difference suggests another price hike is in the cards this week, although probably not until Thursday. I’ll update Wednesday if necessary. On 10/20 at 8:30AM, I rescinded this prediction.
I’ve added a link to Patrick DeHaan’s gas price prediction web site, another citizen of the Grand Rapids area attempting to win the Gas Game. Speaking of which, one in twenty price hikes occur on a Monday. We had one on October 4, and be alert for another one next week, possibly on Monday, October 11, definitely some time next week, to around $2.15. Energy prices kept rallying this week, and who knows when they’ll stop. Prices rose on Wednesday the 13th to $2.09, so you were probably not that impressed with my prediction. Neither was I.