The DOE Report came out this morning, what else is new? Not much, same
old bad news.
-Refiners used 88.3% of capacity, below the 88.7% analysts estimated,
and below the 90+% used just weeks earlier.
-Crude oil stockpiles increased, but not as much as analysts
estimated. They rose 1.1mb compared to an estimated rise of 1.5mb.
-Gasoline stockpiles decreased 1.1mb.
-Distillate demand (diesel) is 5.4% higher than just one year ago
-Gasoline demand is slowing, up only 1.6% over a year ago, compared
with a rise of 2.5+% just weeks ago
-Crude oil and finished gasoline is being imported at a higher rate
due to the high prices.
Speedway is in the middle of an identity crisis. They aren’t sure if
they want to match to $3.19! A few stations are reporting $3.19, but
not many! The negative PR that comes with $3 is HUGE. Thats most
likely why Speedway has tried to resist $3+. If they hadn’t been
concerned with this, I’m willing to wager that they would have
already hiked to $3.05 a few weeks ago when I had “predicted” it. Now
that wholesale prices are way higher, there is no chance for them to
do a small daily increase- its just the ugly $3.19 all at once.
I do think that $3.19 is over done. $3.05-$3.09 is where prices
should be, if Speedway wasn’t trying to play us all.
Keep that tank full, and cut your driving! Its beautiful outside- let
the kids ride their bikes, let them walk to school (and REMIND them
NOT to cross against the signal)
Keeping an eye out, expecting $3 across the boards here soon. Don’t
even think about $4 yet. There is no chance.
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