Comment on the October 9 posting: It is good thing that wasn’t a prediction, as prices rose twice since then to $2.59, and then $2.75.
Sunday, October 25, 2009, 8:30PM: Readers of this blog know that I have been making the case the past few years of correlations between the stock market and the price of gas. Adding to this argument is that the Dow has gone from 6500 in March to 10000 this month, while a gallon of gas has climbed from $2.08 in March to $2.75 this weekend. (A barrel of oil has gone from $50 to $80 since March.) From what I’ve read, government and quasi-government offices such as the Treasury and the Federal Reserve have been pumping dollars into our economy since March to prevent this Great Recession from turning into a New Depression. The dollars are supposed to credit going again, for small businesses, large businesses, and consumers, but that isn’t happening very much. Instead, the dollars are finding their way to the stock, bond, and commodity markets, leading to a rousing rally in stocks, and higher gas prices. So, the economy continues to struggle, unemployment is high, but gas prices are rising despite sluggish demand. To put it mildly, this is not good at all.
The best we can do is figure out what is going to happen to gas prices this week, and maybe save you a few dollars. Although we hiked to $2.75 on Tuesday, wholesale prices continued to rise the rest of the week, and I estimate the 0-cent margin price to be about $2.59 or so, and the 20-cent margin price is $2.84. So, we have the potential for another 10-cent hike on Monday or Tuesday, but it is hard to be certain right now. So, keep your eyes on the price signs or the Internet, and be prepared if a station raises prices soon, so you can find one that hasn’t yet. In Standale, the Marathon is usually the last the raise its price. — Ed Aboufadel.