Speedy Rewards

Yesterday, I signed up for Speedway’s “Speedy Rewards”. Am I moving to the dark side, or am I just a sucker for those frozen Pepsi’s? Maybe I’m just feeling good that they kept the price (barely) under $3, despite a strong run-up in wholesale prices last week. That run-up has turned around, as we have been expriencing extremely volatile commodity markets the past few days. For example, gas futures fell 12 cents a gallon yesterday. The volatility is proof that you have prices being knocked around by speculators. Long-term, this all averages out, as supply meets demand, but short-term, it can play havoc on gas pricing, and price predicting. Using last night’s closing prices, and averaging the HU and RB contracts, we get a 0-cent margin price of $2.70 and a 20-cent margin price of $2.91, and the cheapest gas at the moment is $2.83 in Allendale. So, I wouldn’t pay more than $2.89 a gallon today, even though the price is still $2.99 in a lot of places. It is not at all obvious how the rest of the week is going to play out. The futures markets went down with the stock market, so we got no price hike.

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