Month: September 2007

Maybe $2.69 somewhere soon

Comment on Monday’s prediction:  No price hike all week, so the prediction was CORRECT.

Friday, September 28, 5:00 PM:  Wholesale prices (on AXXIS) dropped further this week, and we are looking at a $2.69 to $2.86 price range according to that number.  Prices are already $2.74 in Wyoming, and we should see below $2.80 in most places over the weekend.  Price hike or not next week?  Can’t say right now.

Look around for gas under $2.90

Comment on 9/12 prediction:  There was no price hike until Thursday the 20th, and the price rose that day to $2.99.

Monday, September 24, 2007, 9:30 AM:  On September 4, we had a price hike to $3.24, with the NYMEX wholesale prices at about $1.93 and the AXXIS prices at about $2.53.  Last Thursday, prices reset to $2.99, NYMEX was at $2.11, but AXXIS had dropped to $2.28.  See the pattern?  AXXIS dropped 25 cents, so did the new price after a price hike.  As you know, I am still working on adjusting my formulas with the AXXIS prices, and at least this month, it looks like we should use an 18-cent margin rather than a 10-cent margin.  If that is the case, then this morning the 18-cent margin price is $2.95, giving us roughly a $2.75-$2.95 range for prices.  Prices in the area are in the range of $2.81 (Cedar Springs and Sparta) to $2.99, with most in the $2.90’s.  So, I predict gently falling prices for the next few days, so try to get gas for under $2.90 when you can.

Minnesota refinery close to opening the spigots on 50,000bpd expansion

Pine Bend refinery located in Minnesota is nearly ready to open the spigots to its nearly completed refinery upgrade.

The story from

Sometime this fall, Pine Bend refinery in
Rosemount, Minnesota’s largest refinery and its biggest source of
gasoline, will get significantly larger.
Owned by Wichita, Kan.-based Flint Hills Resources, the
sprawling maze of pipes, tanks and emission stacks that sits off U.S.
52 will crack open the taps on a $200 million expansion it has been
nursing along for the past several years.
The expansion will increase Pine Bend’s refining capacity by
about 50,000 barrels of oil a day, boosting production from 280,000
barrels to 330,000 barrels daily.
With each barrel holding 42 gallons able to produce 19.6
gallons of gasoline on average, the boost translates to a potential
980,000 gallons of increased gasoline production a day out of the
Rosemount refinery.

Could it get any better? Finally the higher gasoline costs are bringing increased capacity!

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