Oil and gasoline futures prices did not go down last week, and this morning for oil, we’re over $60 a barrel. Unless something dramatic happens quickly in the futures markets, we’re looking at another price hike this week, maybe to $2.39. Up they went on Tuesday to $2.35 — essentially CORRECT!
Month: June 2005
I just got a call from “Deep Throttle”, a friend in the industry. He says that Meijer isn’t matching Speedway’s price hike (to $2.35) and he expects Speedway to back down soon. Deep Throttle was misinformed, as everyone matched the price hike except for Costco and Sam’s Club on 28th Street.
Good competition on the east side of town has been keeping prices lower there, but fasten your seat belts for a big price hike this week. Wholesale gasoline prices have risen 8 cents since Wednesday, and the retailers will take that into account when they set a new price. I am figuring around $2.34 a gallon, plus or minus 3 cents. This is getting close to record territory.
Also, if you notice to the right, I’ve modified my prediction formula a bit, based on a conversation I had last week with a friend in the industry. With prices rising to $2.35 on Monday, the prediction was quite CORRECT.
Wholesale oil prices are up 4% today, although wholesale gas prices are up just modestly today. They had their jump on Friday. With prices as low as $2.03 in town this afternoon, look for a price hike soon to about $2.31. Prices rose to $2.25 or so the next day, so basically CORRECT, although I was a little high on the price prediction.
Wednesday, June 1, 2005: I take a few days to visit the parents out of town, and I return to chaos. List me as a witness to the madness on 44th Street Tuesday afternoon, when the Rich station at Kalamazoo had raised prices to $2.19, while the other stations nearby (Admiral, Meijer’s, Citgo) were still at $1.84 or so. Wow, those were impressive gas lines. Meanwhile in Standale, prices made a “big” jump from $2.13 to $2.19. Meanwhile, I’ve started tracking prices in Fort Wayne, Indiana (where I went to high school), and prices have been stuck in the mid-$1.90’s for two weeks — no big drops down and no big hikes up. Looking ahead, wholesale prices have been trending higher since May 20 and that continues today, which means we should worry about another price hike next week. That’s all for now, and my next post won’t be until June 14. There was a price hike to $2.26 on Tuesday, June 7.