With wholesale market prices rising almost 10 cents already this morning, we will see another hike this week to 3.29-3.35, depending on if this rally holds, but I expect that it will. In fact, I see another rally tomorrow of this magnitude. I think the only thing that will slow these bulls down is the weekly DOE report released this week on Thursday due to the holiday Monday… but thats still a few days off!
After pouring over data from previous years Spring Run-ups, I think I can announce what I found when I did some calculations. Are you sitting down? If this year goes like ANY of the past 8, we WILL see $4 gasoline here in Michigan this Spring. Is it likely? Not immediately, but will take time. This prediction may not some to pass until April or May, like previous years. Not only is $4 a reality, it is LIKELY.
The refinery unit that exploded yesterday in Texas resulted in the entire refinery to shut down. While its a pretty small refinery, this is going to feed the market. They, and I think that more of these refinery problems will be likely, especially when refiners do maintenance this Spring.