Comment on the June 30 prediction: Prices rose on Monday, July 2 in Michigan to $3.55, but only $3.45 in Indiana. Two days later, $3.59 was the price in Indiana, but there was no second hike in Michigan. I had the hike, and the date, but was a bit low on the price, so let’s score this 3/4 CORRECT, 1/4 WRONG.
Tuesday, July 10, 2012, 7:00PM: Prices set for oil and gasoline in trading markets have been bouncing all over the place since June 28. On that day, oil closed $77.69 a barrel. Then on July 3, $87.66. Today at the close, $83.91. Gasoline has been doing a similar dance. Add to the mix that it appears the retailers are trying to push their margins even higher when they hike prices. When that happens, there is more room for prices to fall a few days later. So, the best I can do this evening is re-set the numbers: based on today’s closing prices, retailers will be paying $3.30 a gallon tomorrow to fill their underground tanks. Past patterns indicate that they’ll go down as low as 10 cents below cost, so our floor is $3.20. Prices in Kentwood are $3.32 today. We might be setting up for a price re-set to $3.49 on Thursday. Let’s call that a prediction.