Wholesale prices rose on Tuesday, Thursday, and Friday of last week. The Tuesday rise contributed to the new price last Thursday of $2.29 rather than $2.24. Thursday and Friday’s rise didn’t seem so drastic that we would get another price hike today, but we have, to $2.35. Of course, wholesale prices are down today as I write this, so the new price may be discounted quickly. We are still running 3 cents under the usual 20-cent margin price, though. I expect that to change in May, as the last few years, prices in May have run about 3 cents over the 20-cent margin price. Yes, the new price sure was “discounted quickly”, as Speedway gave back the price hike on Wednesday, and most stations followed.
Month: April 2005
Hello and good Wednesday everyone! I believe that a price rise is due
for the Grand Rapids area for tomorrow- Thursday, April 21. Crude oil
inventories went down unexpectedly and the “morons” at Goldman Sachs
released *another* report about how crude will get more expensive,
trying to increase their profits since gas prices went up after the
news. I can’t believe the market response to Goldman Sach’s reports.
Anyway, wholesale gas went up 7 cents after that report, up to $1.57.
I am estimating a price of 2.24 or possibly 2.299 at worse!
Finally on Monday we began to see prices more in line with what the future prices are telling us. Of course, the problem with that is that we are now set up for a price hike on Wednesday or Thursday. I calculate a new price in the $2.19-$2.24 range. According to someone I know at a certain “Fast” gas station, here’s what will happen: on the day of a price hike, station managers receive an e-mail at about 6AM, specifying the new price. I’m told they are not to implement the price hike until 10AM, and they can delay it for the rest of the day if necessary to deal with nearby competition. Oh, if only I could get on *that* mailing list! The price rose on Thursday the 21st to $2.29, so pretty much CORRECT, though the price was higher than predicted.
Well, we’re starting to see the economies in growing countries start
to slow down, (specifically China) and for the first time in months,
the IEA has LOWERED its forecast of crude oil consumption by 50,000
barrels a day. While that might not seem like much (since the world
uses 84 million barrels a day) its all psychological. Its causing
significant drops in crude oil, especially since Saudi Arabia is now
saying they will pump 500,000 more barrels a day and will promise to
deliver the oil that they promised on contracts. The market is now
A few more facts about crude and gas this week:
U.S. commercial crude oil inventories (excluding those in the
Strategic Petroleum Reserve) rose by 3.6 million barrels from the
previous week. Over the last nine weeks, they have increased a total
of 26.4 million barrels. At 320.7 million barrels, U.S. crude oil
inventories are just below the upper end of the average range for this
time of year. Total motor gasoline inventories increased by 0.8
million barrels last week, and remain above the average range.
Basically we saw a climb in gas inventories EVEN though refinery
utilization was down 2% over last week, which means demand is cooling
PREDICTION: we’ll see gas prices down to the 2.00-2.10 range soon,
MAYBE even break a ONE on the boards at 1.99.
NO rise for this week.
The lowest price in town is $2.21, while the 0-cent-margin price this morning is around $2.08. That means no price hike this week! Did you know, though, that last week, for the first time ever, the price of gasoline in the United States was above $2 a gallon in every state in the Union? (Prices vary due to state taxes, proximity to refineries, and competition.) How nice it is to be CORRECT about no price hike.
Hello and good Friday to everyone! Get out and enjoy the weather 🙂
As for gas prices, we’ve seen a DRAMATIC drop in wholesale prices,
which over the next few days, will mean cheaper prices at the pump.
Interestingly enough, Speedway stations in Fort Wayne, Indiana, went
from 2.39 Monday to 2.08 Wednesday! Amazing. Those stations are making
NO money or losing money. Wholesale gas has been down about 25
cents/gallon from the high early this week. I am estimating that over
time, provided nothing happens for the last 2 hours on the stock
market, that prices will gradually fall to near 2.099.
Hope this is good news to everyone! Enjoy your weekend!
Cliff notes: NO rise for days!
Estimated lowest price coming over next few days: 2.099.