Month: May 2007

Lawsuit against Speedway/Super America/Marathon!?

I encourage ALL who are reading this to comment and speak up!! Leave your comments HERE

Kentucky Attorney General Greg Stumbo announced groundbreaking
litigation filed today in Franklin Circuit Court against Marathon Oil
Corporation, Marathon Petroleum Company, LLC and Speedway SuperAmerica,
LLC, charging the corporations with profiteering during the time of
emergency following Hurricanes Katrina and Rita. The companies are
alleged to have overcharged Kentucky consumers more than $89 million in
grossly excessive motor fuel pricing.

WHERE IS MICHIGAN?! I e-mailed Michigan Attorney General Michael Cox.

Read the full story here

Gasoline wholesale prices PLUMMET!

Gasoline prices plummeted over 4% today (over 10 cents per gallon) on the wholesale market. Could this be the start of a major correction? Its very much a possibility. I earlier predicted a price hike today, and since we haven’t gotten one today, I’m going to say that we are no longer in major danger of a price hike with today’s nosedive.

Ed makes some very good points in his post below, be sure to read them!

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Anticipating Lower Prices in the “Speedway States”

Tuesday, May 29, 2007, 1:15PM:  I know we are hurting with gas prices — Michigan has the highest average price in the country right now.  A newsletter I receive regularly reports that last week “Governor Granholm submitted testimony to Congress on the escalating cost and volatility of gasoline prices in Michigan and across the nation. The Governor also joined with other Democratic governors in asking President Bush to support legislation that would define gas price gouging and press oil companies to increase refinery capacity.”  I think the governors of the “Speedway States” (MI, OH, IN, IL, WI, MN) need to apply whatever pressure they can to improve the situation with refineries, but it is clear to me that the retailers are not gouging us.  They are paying a wholesale price that is highly elevated right now.  So is it the refiners?  The oil companies?  Both?

And what about those companies that own refineries and retail outlets, like Speedway?  I still want a better understanding of whether or not the fact that the six states listed above have the highest prices in the country right now has anything to do with the fact that these are the six states that Speedway sells gas in.  We know the extent to which Speedway leads the other stations around when it comes to retail prices.  What influence do they have on wholesale prices?  I just don’t know.

The real point of this site is to try to buy gas before a price hike.  It remains difficult to do this as long as wholesale prices in the Speedway States are so out-of-whack with other parts of the country.  The one read I have on regional wholesale prices is that they are lower than they were a week ago when we jumped to $3.65.  That suggests to me we have room to go down to $3.35, and since we are currently in a $3.41-$3.59 range, I’m going to proceed under the assumption that a price hike isn’t coming this week and hold off on filling up with gas.  So, let’s make that a prediction, subject to change.

Have a great Memorial Day, get gas before Tuesday!

Hoping you all have a terrific Memorial Day…

A gas price hike is looking likely in Grand Rapids area to perhaps $3.59 or $3.65 (more likely the $3.59) on Tuesday.

For the rest of the nation, prices closed higher again Friday on continued worries about demand. 7/10 Americans polled by AAA said they planned to take to the road, despite the high gas prices.

If you live in Grand Rapids or West Michigan, be sure to be tuned to WOOD AM 1300 tomorrow morning at 7:30am.

Look for prices to drop a few pennies this weekend!

Looking like gas prices in the Midwest should trickle down a few cents over the weekend; also in the Gulf states we should see a small decline in prices (a few cents at best)

But for those in Grand Rapids, we’re already seeing $3.49 at Speedway in the East Paris/Cascade Rd. Area.

Have a good Memorial Day. The further you drive, the further gasoline prices will climb. Just remember that. We’re all in this together!

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Today’s DOE report: make or break!

The Weekly DOE Report was just released. Highlights and comments are below:

**Refineries operated at 91.1% of capacity, way over what analysts
expected. The analyst predicted target was 90%. This is good news.

**Crude oil imports averaged 10.9 million barrels per day last week.
Over the last month, crude imports have averaged 563,000 more barrels
per day than 2006.

**Total motor gasoline imports averaged 1.3 million barrels per day, up
200,000 barrels from the previous week (since the profit margin is
*huge* we’re likely seeing gasoline come from far away places like
Europe)

**Crude oil stockpiles added 2.0 million barrels, compared to the
analyst predicted 500,000-700,000. This is good news, but won’t really
play into prices as oil inventories are still above the average range
for this time of year.

**Gasoline stockpiles added 1.5 million barrels, compared to the analyst predicted 1.2 million barrels.

**Over the past 4 weeks, demand has averaged 9.4 million barrels per day, which is 1.4% more than 2006.

Comments:
Just thought I’d remind you all that refineries have never run over
93.8% of capacity since Katrina. The builds in stockpiles are good,
gasoline could have built more, and the additional build in crude will
help, but not by much. We might see gasoline trade higher, but I think
gasoline today should remain flat to slightly lower due to the higher
than expected refinery runs. Refiners are now getting their act
together- 91.1% is a good number, and that even reflects one of the
nations largest refineries in Whiting, Indiana being at 50% for a few
weeks still. It seems that the refineries that aren’t having issues are
likely running 99-100% to take advantage of the higher margins.

This was a good report, but that doesn’t mean that gas prices will
automatically drop. I’ll be watching the markets activities today and
will dispatch another e-mail if necessary, but at this point it doesn’t
seem likely.

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