Monday, December 6, 2004

It has been observed by Patrick DeHaan that the Dept. of Energy report on Wednesday morning has had a major impact on wholesale prices, particularly lately. That is what happened last week, and prices are dropping. As of lunchtime today, Friday’s wholesale prices are holding, which translates to 0-margin retail price of $1.64. So, I predict continued price drops this week to the mid-$1.60’s, followed by a price hike, on Wednesday or Thursday, to around $1.84. The Wednesday DOE report might throw a wrench in that prediction, though. Instead of a price hike, a price war has broken out on Lake Michigan Drive, with prices as low as $1.57 this afternoon. Big WRONG prediction.