A warning about gas prices… the good kind.

We saw the NYMEX/Chicago market price fall to it’s lowest level since 1/30/13, to $2.8713. This is down from $3.0786 on Friday, and a high of $3.1095 on 2/15/13. Is relief in sight? The market has been very volatile recently, with wide swings of prices from day to day up and down. The last two days we saw drops of 8.73¢ and 12¢, with another drop of 10.67 from the 19th to the 20th. Prices went up more than 5¢ four times in the last month, with a high of 14.87¢ from the 13th to the 14th. So it’s hard to tell whether these low prices will fall more, even out, or go up again.

The average back in 1/30/13 was around $3.55 depending on your state. The average now is around $3.85. Spike Line margins are also very high, from 26-30¢ Expect pump prices to fall tomorrow, and barring some sort of volatile move upward in the market, we should see prices fall through the weekend.

A note about the direction of the Spike Line going forward. I am working on the formatting of the page here to make it more readable. You should see something on that here in the coming weeks. Also, when I roll that out, I will also roll out daily Tweets and posts to the Facebook page. Your feedback on this is greatly appreciated.

Updated: February 27, 2013 — 11:18 pm

13 Comments

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  1. good to know that nymex price fell! though if you are watching cnbc then they have now started the discussion about the nations reserves standing a 5 year low thus price are set to rise despite decreasing price of gasoline or crude in the commodities market. in a way a commoner like us should remember one thing that there are actual and imaginary costs associated. every time you can’t justify the decreasing stock market with rising price at pump then blame it to imaginary price! in general be ready to practice shelling out $4/gallon and above. another debate going on at washington though not very popular among the lawmaker is to add cost of environmental damage each gallon of petroleum product causes. if that becomes the law the price of gasoline will jump to around $25+/gallon, heating gas will stand around $10, Diesel around $15. This based on the scientific study which is now very well accepted (as charged by airlines as carbon footprint tax!) fact that each human being produces around 6 tons of carbon per year! aren’t we natives in debating and worrying about the few cents here and there?

  2. paid 3.82/gallon today around 6pm!

  3. Spot closed at $2.7486 yesterday. Greedway sure is slow to come down to match.

  4. Typical Greedway style! I was in Chicago yesterday and saw $4.32. Just 200 miles to the south I saw $3.63 in Daleville, IN. How anyone can live in the Windy City sure beats me. High taxes, outrageous property taxes and of course sky high gas prices would be tough to deal with unless you’re making six figures.

  5. I know this is generalization but rich people don’t care about the price of some things as much as a person watching their budget.

  6. So, is it possible to go this week without a price reset or hike for no reason?

  7. Jim,

    NYH RBOB contract rolled over, and is currently at $3.11. THAT, alone, is reason enough for Greedway to jump. Nevermind that our prices aren’t even based on NYH.

  8. This is similar to the situation last year- there is noticeable disconnect between NYMEX and Chicago Spot. Even though the discrepancy is not nearly as bad as it was a year ago, one of them is going to give. I hate to be cynical, but I think it’s obvious which one is most likely to do so.

  9. The way it is at the moment, we have what Patrick used to call the “Chicago Discount”. It usually is about 20 cents lower than the NYMEX, except when we are having refinery issues. It’s a little higher than that, but I think we are very safe from a spike for now.

  10. I noticed WTI Crude is creeping back up again. Up more than $1 today alone which hopefully won’t be reflected in Chicago Spot. This little dip in gas prices is nice, but how long will it last? The Greedway execs gotta be itching to pull the trigger.

  11. The Chicago Spot is up 7 cents today so I think Greedway will pull the trigger on a hike Monday to $3.99 again?

  12. Yep, I’m thinking a Monday/Tuesday spike.
    But, $3.799 or $3.899, depending on state.
    Don’t think anyone will see $3.999.

  13. today at grandville, greedway went 3.64 from 3.74. seems the deep before spike!

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