Prices continue to moderate!
Monday 30 Jul 2007 | Posted By Patrick | Commentary
Its definitely been a while since I wrote here updating you all on gasoline prices! As you have all noticed, gas prices have slowly fallen to the $2.80s seen around the area today. Wholesale prices have slowly been falling, we saw a low of about 2.06 last week before a slight rise to today’s 2.0948.
We may see some investors cash out their oil and gasoline profits as the U.S. market fears of a downfall in housing scare folks off. This should cause gasoline prices to fall as well.
We’re still not out of the woods yet- hurricane season is starting to gear up. Today is July 30, and the major part of the hurricane season launches August 1. We’re seeing surface ocean temps in the Gulf running 85-90 degrees, which is definitely hot enough to cause a sneeze to turn into a major storm.
We should see prices slowly fall to the 2.70s, but a hike to 2.99 might occur somewhere here in the near future if prices on the market continue higher.
Midwest PADD storage is at 49.3 million barrels, virtually unchanged from a week ago.
No hike is imminent YET, but keep on the lookout here.
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It looks like wholesale prices have bottomed out for now, but people aren’t smart enough to stop dropping retail prices. Today’s cost is around $2.70, Speedway is below that in Kalamazoo and a few other places. I wouldn’t be surprised to see a restore to $2.899 this week, about 75-80% of their stores are below that today.
I have no idea why GR prices are dropping so slow. Speedway on Cascade Rd is still $3.099? Their inventory cost has to be at least 30 cents below that. I guess they need to make up for all the time they were 20 cents below cost after reopening the store.