That’s right folks- we’re in a huge downward trend. I’ll be the first to say I screwed up! I filled up for $3.77 (wow, seems like a while ago!) just TWO WEEKS ago… I’m still burning through that tank in fact. Was that a mistake? YES! Is it a mistake to do the same thing today and fill to “F”? YES! We have much more of a drop in store for you.
Here is my prediction: UNDER $3 in the next 7-10 days in the Midwest (for the areas still over $3)! Nationwide, we should see it in 2 or so weeks!
Let me rewind to part of my SUMMER 2008 prediction I made on MAY 27, 2008:
Late May prices peak to $4+, slowly decline into early-to-mid June. Early July will have much of the same, people will be rejoicing when prices come under $3, but that doesn’t look entirely realistic as hurricane season approaches. Traders will begin focusing on any hurricane that develops, and starting in mid-August, we’ll see prices fluctuate quite a bit. If any Category 3/etc or higher hurricane strikes West of the Mississippi in the Gulf, expect gasoline to jump right back to Spring highs or even higher. Expect market fundamentals to kick in and we may see a large correction in gasoline prices. I think that with demand slowing late Summer and oil prices due to come back down, it will boost crack profit, which will entice refiners to make utilization rates climb all summer leading to a potential collapse in prices this fall/winter- perhaps as low as $2.50 starting in October and lasting through mid-November.
What I said in November, 2007:
Oil is due for a large correction. Should come back to $70 or $80 no problems… so until that happens we’re going to continue to get set up for a market correction (hopefully not a recession)
Ok, so I’m not a “professional”, but please tell me what you thought of my LONG TERM outlook. I guess I’m a bit boastful (more or less excited that I was closer than I thought)
We can expect prices to continue to fall folks. $2.99? It WON’T stop there. I’m now expecting to see my summer prediction come insanely close to what actually happened.
ONLY BUY what you need… a few gallons at a time. You’ll end up saving a few dollars per week- but it all adds up!