With Monday’s big price hike, we’re done the week, right? So, let me tell you about the new Standale Gas Game, now that the Meijer’s gas station is open. We basically have four stations competing: the Speedway a few miles down across from Family Fare, the Marathon on the corner of Wilson and Lake Michigan Drive, the Citgo in Standale, and the new Meijer’s on Wilson. I’ve seen this twice now: Speedway does the price hike around mid-day. Marathon wants to match the new price, but both Citgo and Meijer’s hold at the old price ($2.05 yesterday), so Marathon does a smaller hike (yesterday to $2.19.) Then there are long gas lines the next few hours at the two cheapies. Meijer’s then raises its price to match Marathon. Finally, when Citgo matches Speedway at the end of the day, the other two match Speedway, and the gas lines disappear.
What to learn from this: if you see a gas hike, go to Standale as you have a few hours to get the old price, if you are willing to wait in a gas line for ten minutes (like I did yesterday).
Well, turns out that for whatever crazy (and good) reasons, stations
opted not to raise prices last week like I told you. At the current
pricing they are indeed losing money on each gallon, unless it is a
huge station which can afford it. Anyhow, looking at market
indications, I would say that theres a 98% chance of a rise before
Wednesday. I’m thinking *possibly* Monday, maybe Tuesday, to 2.25 or 2.29.
Go fill up!
GAS PRICE STATUS:
Currently, as of 1:30pm EST, I am calling for NO RISE TOMORROW.
However, this *may* change later today or tonight, in which case I
will dispatch another e-mail notifying you of this.
Comments on prices: Today we got a good and bad market report. First
off, CRUDE OIL inventories had a *large* gain (the API reported 8.8
million barrel gain!) which is causing CRUDE prices to slide a lot.
However, gasoline inventories fell a whopping 4 million barrels.
(Thats the most I’ve ever seen) However, wholesale gas prices are
falling (it doesn’t make much sense). Some are calling this a market
correction and thats why prices are falling across the board. I’ll
keep my eye on market indicators tonight, and, if necessary, send
another e-mail ONLY if prices seem to be headed up.
Current Market Prices:
Nymex Gasoline $1.551/gal (down $.0239, 1.5%)
WTI Cushing (OIL) $49.4/bar (down $4.88, 9%)
Nymex Crude (OIL) $53.95bar (down $2.08, 4%)
Well, there has been additional after-market news that I believe will
send pump prices up tomorrow. The largest gasoline refinery in the
United States has killed several workers and halted production. This
refinery produces THREE percent of all United States gasoline.
Afterhours prices have gone up, and I believe prices will rise with
For the full story, follow the link:
Gas Price Rise Warning:
Thursday, March 24
Prices Estimated to go up to: $2.29
Current market price (8pm est): $1.59/gal
FILL UP! 🙂
Despite drops in the wholesale market the last two days, it feels like a 50/50 chance of a price hike tomorrow — it just depends on how aggressive Speedway wants to be with their margins. The crystal ball remains cloudy, so no official prediction one way or the other. No price hike on 3/24, but a rare Monday hike on 3/28 to $2.29. My ambivalence was understandable.
Futures prices are 4 cents higher than a week ago, when we jumped to $2.25. That suggests a new price of $2.29 this Thursday. With the low price in town of $2.11, that could happen, but I’m not sure yet, because I think we’re going to see either a jump up or down in the futures prices in the next 24 hours, due to the Federal Reserve meeting and the weekly DOE report. So, stay tuned.