“… unless something goes crazy tomorrow.”
1 comment Thursday, 05-17-07 | Posted By Ed Aboufadel | Predictions
Thursday, May 17, 7:20PM: Well, something seems to have gone crazy today, as we have more refinery problems, a jump of 10 cents in the NYMEX RB price, and a Midwest wholesale price in the $2.80′s. That gives us a 20-cent margin price of about $3.69. So, I take back yesterday’s prediction about prices dropping a bit, and predict a price hike on Friday to something above our current record high of $3.49.
I don’t know about other brands, but we had a 14.5 cent increase last night. Which puts our cost at around $3.35. I see no reason for Speedway to go above $3.499 today, our margins are fine at that price. But, they have about a fourth of their stations at or below cost (24 cents below in South Haven), so I wouldn’t be surprised if they bring all the stores back to $3.499 today.
It’s hard to believe, but our industry is still stuggling from the 2005 huricanes. Most of these refinery problems are because they couldn’t do their regular yearly maintaince in 2005 or 2006. I really hate to think how bad things will get if we have another major hurricane before they can finish all these repairs and get inventories caught up.