Comment on the February 13 posting: Prices got down to the $3.20’s before this week’s hike-fest.
Thursday, February 23, 2012, 6:15PM: Well, I picked a good time to go traveling and have wall-to-wall meetings at work. Two hikes this week, and we are sitting at $3.69. Why? As noted in earlier postings on this site, Chicago wholesale prices plunged earlier this month, while wholesale prices in other places like New York didn’t. That was a temporary situation, and now it is correcting with our prices rising to get in line with the rest of the country. Then we get the jacking up of oil prices related to world tensions, for which politicians are blaming speculators (and they may have a point). Combined, wholesale prices rose 60 cents a gallon this week, and that is why we are at $3.69. So, now what? While we are at the mercy of the market forces, there is also a sense of panic in the air, which never amounts to anything. So, all those people predicting $5 a gallon gas by Memorial Day should calm down. They may be right, but that would be an incredible move in prices for which there is little precedent. –Ed Aboufadel