I don’t like to be bearer of bad news, but I believe we are approaching the lowest gasoline prices we’ll see for a while. While gasoline prices usually "bottom out" in late November and early December, I believe with the dramatic fall in prices and negative profit outlooks for refining gasoline, it will result in higher prices.
Along with OPEC’s massive production cuts, we’ll be seeing inventories stay steady and not build like they should heading into peak oil season (winter).
Wholesale prices rose earlier this week on worries about demand coming back as well as lower production from OPEC and local gas stations are getting close to the 0-cent price margin. Today’s cost to stations is under $2.10, so we have a little room to fall yet, but stations under $1.99 (Admiral in Plainwell comes to mind) are losing money and will need to raise prices.
The question is, will we ever see $1.99 like parts of Michigan has before prices start to head up? It’ll be a darn close call!
In the meanwhile, if you see gas prices like below, make sure to fill up all your gas tanks- vehicle, portable, etc!
A hike for West Michigan is NOT yet imminent, but it won’t be too far off!
In other news, you might have noticed- we hit 300,000 visitors to the site on November 5! Thanks to all who keep coming back! If you recall, we posted about having hit 200,000 this past June, so to already hit 300,000 is amazing! THANK YOU FOLKS!