So Speedway finally decided to hike today, the day after a 10-cent drop on the wholesale market. It would appear their hike isn’t sticking, with their own stations falling back to previous prices. IE- the Speedway at Michigan and Fuller is back down to 2.15 as of 2:30pm from 2.29 at 12:30pm.
Any 2.29 prices shouldn’t last long.
Looks like a decent DOE report today, not so hot for gasoline, but much more for heating oil and diesel.
Oil inventories fell about 2.8 million barrels (a touch more than expected), but that could be due to refineries operating at 93.4% capacity last week.
Gasoline inventories rose 600,000 barrels and remain just above the average range.
Distillate inventories rose 4.1 million barrels and remain well above the average range.
COMMENTS: I think we’ll see gasoline prices hang tight, with little change, or a small fall. Distillate prices (heating oil) should take a nice drop today after we learned that refiners are stocking heating oil and diesel well ahead of winter. We still have a few weeks to build stocks, but I wouldn’t be surprised to see refiners go down for maintenance, due to the collapse in refining margins as prices drop. So we might see gasoline prices come up in the next few weeks/months as refineries go down, and gasoline stocks fall. Is this as low as we’ll see in gas prices? Could be.