Month: November 2014

Oil Prices Crash — Gas Prices Next

Comment on the November 14 prediction:  I am going to score it as WRONG, because retail prices haven’t dropped very much, and we actually got a price reset last Monday to $2.99 in Michigan.

Sunday, November 30, 2014, 3:30PM:  We saw a price re-set last week, despite a lack of fireworks in the wholesale market, although ethanol has been popping higher lately.  It make me think that our Big Red retail friends are trying to change the rules of the game.  Unfortunately for them, oil prices crashed on Friday, and based on UGA (the ETF for gasoline), so did wholesale gas prices, although I can’t find a wholesale quote this weekend.  So, retail prices have to go down significantly this week — we have $2.76 this afternoon in Grand Rapids, and I think we’ll see $2.50 somewhere in the area this week.  That’s a prediction. — Ed A.

$3.09? Really?

Friday, November 14, 2014, 9:30AM:  This week, we’ve seen hikes in Indiana to $2.99 and yesterday in Michigan to $3.09.  These jumps haven’t really fit the Gas Game historical pattern, and yesterday’s Michigan jump looks like a desperate effort to make up for some losses on old inventory purchased at a much higher price in September.  Expect significantly lower prices, as oil fell to its lowest price this year late Thursday, and gasoline futures followed.  Ethanol is back up, but I am still estimating a price to retailers of about $2.75, so there’s a lot of room to drop. –Ed A.

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