Hurricane Dean threatens Mexico… wholesale prices nosedive!
Monday 20 Aug 2007 | Posted By Patrick | Commentary
With Dean on a much more southern track than initially thought, wholesale prices of gasoline has taken a large hit overnight, mainly on relief that this huge hurricane will miss most of the U.S. oil and gasoline infrastructure.
As we sit now, wholesale gasoline prices have backed off a whopping 7.43 cents per gallon overnight. The selling could easily accelerate once trading becomes more active this morning.
I’ll have a wrap up later this afternoon if necessary.
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Wholesale prices jumped up 10+ cents Friday night, so most stations had a rough weekend. Today’s cost is around $2.90.
It’s hard to guess if Speedway will go up based on this weekend’s / today’s cost or wait it out and see what happens tonight. $3.099 today is very possible.
Even if the storm doesn’t damage anything in the Gulf, they still have to shut down the shipping ports for a few days, which cuts into supply. I certainally wouldn’t want to drive one of those supertankers through rough seas. There are also a few refineries in the Caribbean, that we get imports from, that could be effected.
$3.099 it is. It might not hold long if we get a big drop tonight like the market is showing.