After an unprecedented week of price hikes in the area, I am sad to report that more hike(s) are likely very soon. The stage is set for a price hike Monday to $1.99 (they’d go higher but I expect them to stay under $2 because of negative reaction), but the exact price may be different if the market drops a significant amount tonight (Sunday).
Unfortunately, it looks like the pending war between Israel and Hamas and OPEC are likely two of the main reasons that wholesale prices and oil prices have been rising. It looks like the market may be starting to turn back as we get closer to Spring.
Also, our spot pricing is much higher, in my opinion, due to our PADD levels being so low. We’re sitting at 46.8 million barrels of petroleum in storage. We haven’t seen a low like that since 2007.
That can probably be traced to Sunoco’s Toledo, OH refinery undergoing 6 weeks of maintenance that that recently started.
Those two factors are likely pushing MIDWEST prices higher than other places.
We’ll see how things go, but I would definitely fill up tonight or first thing in the morning as our trend has definitely turned into a upward pressure on prices rather than a downward pressure on prices.
Has our enjoyment of gas around $1.50 come to an end? It might have…