OK folks, so you might want to sit down to read this.
Last week, (the 10th) I made a long post about what was wrong, how to fix it, and how long things will stay bad. I mentioned that $3.50 was in the realm of possibility, and we’ve hit that in Grand Rapids today- $3.49 at Speedway and I just got a Meijer alert, which means Meijer will most likely match.
You’re asking WHAT HAPPENED over-night, or WHAT HAPPENED this time?
Prices on the wholesale market closed up last week big time, but yesterday they DROPPED 6 cents per gallon. We’re seeing that rise at the pump now, but it will take several days before the 6 cents comes off our prices. Gasoline is down another cent right now on the wholesale market, to 2.29.
What I think is happening:
Traders/Distributors are buying up Midwest gasoline at cheaper prices and “hoarding” it. Supplies are tight right now, REAL right in the Midwest, so they are trying to get enough gasoline for themselves and their customers. That demand is driving prices higher.
Where do we go from here?
Well, last time I said $4 gas is 1/50 odds. I’m pretty firm on that, but we might now see $3.65 sometime…
Sit down for this, again:
Last night I checked my benchmark station in Indiana. They were at $3.24. Last night they hiked to $3.34, and this morning $3.44!! Remember what I said? West Michigan/Grand Rapids prices usually are about 15-20 cents higher than that station. Does that mean we’ll see a hike tomorrow to $3.65? POSSIBLY, I’m not sure. This “climate” in The Gas Game makes predictions so difficult. The current trend is definitely upward, so make sure you’re keeping full.
IN NO WAY IS THIS A CRISIS. We have plenty of gasoline. I’m starting to worry that the market is going on fear now, with traders buying up as much as possible. We’re going to hit a peak very soon in my opinion and we might just see a large correction downward.
I’m thinking about organizing a Grand Rapids “Day In” campaign that would encourage people to stay home after they work, or simply ONLY use their car for work purposes. Ditch the restaurants, ditch the shopping. If the entire economy starts to falter, so will Big Oil! WE are the ones that can have control. Without people buying gasoline, without people shopping, then what?
Would anyone support this idea with me?
E-mail me if you’re interested. All you have to say is “I’m interested” or perhaps give me your thoughts and opinions.
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