Comment on last weekâ€™s prediction: Prices have kept falling, slowly but surely, to under $2.70 as of the morning of August 23, so the prediction was CORRECT.
Wednesday, August 23, 2006, 8:30 AM: Welcome to my new web site for The Gas Game! The collapse in wholesale prices during the first week of August is finally finding its way to the gas pump. It has taken a while, which has made me a bit suspicious of how closely NYMEX prices are tracking Midwest wholesale prices this month. Nevertheless, using yesterdayâ€™s closing prices, the 0-cent margin price computes to about $2.51, and the 20-cent margin price to about $2.72. That suggests we still have significant room for prices to drop. On the other hand, if the â€œChicago Summer Premiumâ€ is back, then we could get a price hike to $2.79 by the end of the week. So, clearly Iâ€™m not making a prediction today, but I filled up this morning for $2.69 just to be safe. (I was also at 1/4 tank.)