Today’s sneaky price hike was the result of a poor DOE report that showed gasoline stockpiles posting a surprising loss of 3.5mb when they were “expected” to rise marginally by 500,000 barrels.
The market yesterday was up 14-cents per gallon. It’s a weak excuse to rise prices, as only stations that bought gasoline today and late last night would be effected, but I guess they’ll try anything.
Prices on the market today are down, as I expected after a large rise Wednesday. We shouldn’t see stations that raised prices hold on long, I expect prices to drop down to the $3.70’s this weekend. I just hope the market hasn’t lost what we were enjoying… a decent size sell-off.
For now, shop around. Some stations didn’t even raise prices, perhaps because they didn’t need fuel, but even the stations that did hike shouldn’t hold out long. We’ll see prices continue their way down.
PS- Benchmark station in Indiana just jumped 20 cents from $3.69 to $3.89…wowzers!
Monday, July 28, 2008, 8:30 PM: Yeah, I’ve been kind of busy lately, with no time to post any updates or predictions, but with wholesale prices down 50 cents a gallon the past few weeks, it has been nice to watch that drop trickle down to the retail level. If my calculations are correct, we have room to go down to $3.70 the next few days. I’ll check in again next week.
A good DOE report, good news here, good news there, congress acting… blah blah… prices are falling!
Wholesale gasoline prices, as you can see from the ticker on the left have been taking another beating this afternoon after a quiet morning.
Prices at this hour are down nearly another 11-cents… meaning nationwide price averages definitely should be going under $4 the next week or two! Grand Rapids and the Midwest could easily see $3.60’s soon, some places in Ohio should see under $3.50! This will definitely take time to reach… each day a station waits to replenish its supplies could save it hundreds, perhaps thousands of dollars!
Prices will be slow to come down, but they ARE falling!
The DOE report showed oil supplies dropping by a smaller than expected amount, and gasoline stockpiles rose AGAIN… they are now ABOVE the upper constraint of the average range for this time of year. Demand is way down, demand destruction is rampant and likely permanent. China is feeling extreme pressure to pass yet another price hike on to its gasoline consumers, which would yet another attempt to stifle increasing demand and huge losses from Chinese refiners.
Also, I’m debating making an opinion regarding any new drilling in Alaska (since everyone is making it a huge issue). If you’d be interested in hearing my opinion (from a non-partisan point of view), leave me a comment.
So again, in the mean time, I’d only put minimal amounts of gas in your tank, prices will be going down everyday!
With news from major forecasting firms that project Dolly to miss major Gulf rigs and refineries, traders are busy selling off their contracts for gasoline and oil.
As you can see on the ticker on the left, gasoline is down nearly 10-cents/gal and oil is down over $4/bbl.
Hopefully this continues, and MAYBE we can see $3.89 at some stations by Thursday.
With one simple visit to TheGasGame.com, consumers can now see delayed trades of oil and gasoline futures!
TheGasGame.com is your complete source for beating high gas prices, and adding this information on the website will give consumers one less place to find the information. Wholesale oil and gasoline futures are traded on the NYMEX exchange and directly influence local prices.
The information can be found on the sidebar (the left of the screen) under the search area. Look for the “OIL/GASOLINE FUTURES” headline. Since futures are traded by month, you’ll see the soonest month’s contract. PRICES ARE IN U.S. Dollars (3.22= $3.22, etc)
We’ve also made some changes to our design for those running Internet Explorer. Hopefully you notice the changes.
THIS POST EDITED AT 4:20PM EDT 7/18/08
Speedway Station at Michigan and Fuller STILL charging $4.25 as of Friday mid-morning!
[IMAGE: Cost to large branded station (AS LOW AS) $3.67 VS Retail Price, as high as $4.25]