Comment on my last prediction:   To honor President Ford, prices rose to $2.35 on Tuesday, January 2nd.  Prices went down by New Years Day.  What I wrote didn’t seem like a prediction, though — more of a comment.

Monday, January 8, 2007, 1:15 PM:  It is a new year, and I am back from a 4-day trip to New Orleans, where I saw gas yesterday for $2.09 a gallon.  Cheapest in the area here is $2.11, and wholesale gas prices have been dropping since trading opened up on January 3rd.  As of lunchtime today, we have wholesale prices around $1.48.  This translates to a 0-cent margin price of $1.98 and a 20-cent margin price of $2.19.  As most Speedways are above $2.19 right now, I predict lower prices to continue this week, and we might see a $1.99 somewhere before the next hike.

Tags: , , , ,