Gas Prices: First Clearance Sale of 2015

Comment on the February 25 prediction:  Here in Michigan, it was CORRECT — prices rose as predicted.

Saturday, March 7, 2015, 3:00PM:  By the end of January, oil had fallen below $50 a barrel, and wholesale gas (Chicago CBOB) was around $1.40.  Then, in February, oil attempted to rally, and got as high as $53 on a closing basis.  Gasoline got excited, as it usually does in February, with CBOB jumping to $1.65, leading to retail prices like $2.49. However, after the past week, we are back to the “under $50/around $1.40” pricing, and that opens up an opportunity for retail prices to fall to $2.19.  In fact, you can get gas for $2.14 this afternoon in Lowell!  Elsewhere, prices in the $2.30’s should be coming down over the next several days, and I can’t see any price hike on the horizon. — Ed A.

Updated: March 7, 2015 — 2:44 pm

11 Comments

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  1. Ed…anywhere the Chicago spot vs NYMEX RBOB historical chart can be found. At 48 cents under it’s at levels normally only found in the November-December time frame as I recall. I’d guess it’s usually more like 10-20 under in early March. There’s got to be an extra glut of gas in the Midwest.

  2. Cincy average STILL $2.35.
    Pad those margins.

  3. Not a glut per se, refiners liquidating winter spec gasoline. Be ready for prices to snap back once the high RVP winter gasoline inventories are gone.

  4. A few stations in Fort Wayne have stepped below the $3.30 line, but not many. Hanging tight, it looks.

  5. $2.14 in Greenville, MI over the weekend (or $2.09 with your Meijer credit card).

  6. Jim, I don’t know. Bloomberg used to have a quote page, but it disappeared more than a year ago.

  7. Just updated my spreadsheet — something weird and not good is going on in Chicago. From http://www.kisfutureslive.com/index.cfm?show=803&product=DTNMKTWRHEADLINENEWS&id=07020A5B

    “… [wholesale] gasoline soared over 17.0cts gal on aggressive buying by a
    regional refiner.”

    Suddenly, that “no hike” prediction is looking dicey.

  8. Patrick…The winter blend must have disappeared over the weekend!

  9. So, if that puts spot at $1.60 and the Ohio average is $2.31, the spread is 71 cents. We will be spiking tomorrow or Wed/Thur, no doubt(assuming that 17 cents doesn’t reverse itself tomorrow).

  10. A lot of sub $2.00 prices showing up around the Flint area. They’re getying close in the Spring Lake/Grand Haven area as well, but it sounds like it won’t last?

  11. Definitely not going to last in Michigan. Speedway has already pulled the trigger on a reset to $2.39 this morning. Haven’t seen evidence of the same here in Indiana yet

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