Last week brought an unexpected jump in gasoline stockpiles! Analysts were predicting a drop of 400,000 barrels while a jump of 1.3 million barrels actually occurred. Demand is flat over last year as prices remain high.
We may see oil continue to climb as we saw another drop in crude oil inventories. However, we’re still in the upper average of the range for this time of year.
Midwest PADD remained relatively flat at 47 or so million barrels.
We may see another hike depending on what oil does today.
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Comment on Tuesday’s prediction:Â Good plan!Â Prices hiked to $2.99 Thursday morning, so the prediction was CORRECT.
Friday, October 26, 4:30 PM:Â Yow — wholesale prices have ramped up the past three days, so it looks like another hike to $3.09 on Monday!
Tuesday, October 23, 9:00 AM: I’m down to a quarter-tank and I need to fill up today or tomorrow. Here is what I am thinking: We’re going to get a price hike this week, back to around $2.99, because wholesale prices haven’t changed much since the last hike, and you can find gas for $2.79 around town. If the hike is today, then I am out of luck, because I am already at work (unless I find a station that is slow to hike). Looks like I could drive down to Jenison after work and get gas for $2.83, and then do some shopping at the mall. OK, that’s the plan.
Thursday, October 18, 3:30 PM:Â Although the $89+ oil prices are in the news, wholesale gas prices are not as perky. From September 20 until today, NYMEX prices are the same, AXXIS prices are 9 cents lower, while retail gas prices are in a $2.69-$2.99 range.Â $2.99 seems a bit high given that we had a hike to $2.99 on September 20 with AXXIS prices higher, but higher oil prices are going to mean higher gas prices, if not right away, then soon.Â My gas buying strategy the next few days is to wait until Sunday evening or Monday morning to fill up, either at Costco or in Grandville, because I don’t expect a price hike tomorrow, but if oil goes over $90 tomorrow, we’ll see it at the pump early next week.
Inflation-adjusted, the highest price ever for oil is $101 a barrel.Â If we get to $100, sadly, the other 49 states get to join us in our recession.
As oil prices jump to an all time high, expect gasoline to follow the road higher. I’m looking for a hike to 2.99 fairly soon here. I’d get gas first thing tomorrow. One thing is for sure, prices won’t go much lower.
I’ll be filling up at Costco ASAP.
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Comment on my 10/2 prediction:Â Well, there was a price hike last week, but it went to $2.89, so the prediction was WRONG.Â There was another price hike on October 11 to $2.95.
Friday, October 12, 4:30 PM:Â A combination of business at work and what I thought were benign wholesale gasoline numbers led to no post earlier this week, so my apologies.Â Retail prices are running about six or seven cents higher than I would expect.Â In addition, usually when Speedway hikes, the Indiana prices are re-set to a dime less than the Michigan prices.Â This time the difference was 16 cents.Â I am not sure why the hike had the extra six cents in it, nor am I sure why they even bothered hiking, as wholesale prices have been pretty stable the past week.Â Last year, though, there were a few price hikes in early November that didn’t fit the pattern, either, so let’s just chalk this up to the retailers being more aggressive lately trying to make a buck.Â As of the close of business today, the wholesale price corresponds to a retail range of $2.61 to $2.89, if I don’t add in the extra six cents.Â So, if you can make it through the weekend without filling up, you ought to see lower prices by Monday (as opposed to static prices).Â If not, gas is $2.85 at one of the Meijer’s on 28th street.