Comment on the January 14 prediction: They waited until the end of that week to hike prices, so the prediction was WRONG.
Thursday, January 31, 2013, 2:35PM: Arrggh. With my recent travel and work schedule, it has been hard for me to keep up. I updated my charts late last night, and saw the possibility of a price hike today, but I didn’t get this post out in time. $3.75?! Well, it is hard to blame the retailers, as their costs have shot up about 50 cents a gallon in the past two weeks. And, in fact, January is usually not a kind month for motorists when it comes to gas prices. The surging stock market hasn’t helped, although I was surprised that gas prices were pretty calm the first half of January.
I’ve started tracking the price of a share of Valero (VLO), the big gas refiner. This article in Futures Magazine suggests VLO may be a good predictor of gas prices. Some recent convincing evidence: VLO has gone from $32 in December to $43 now. And they are making great profits! –Ed Aboufadel