Election Year Worries

Comment on the December 30 prediction:  Prices held steady until we saw a reset on January 4.  It wasn’t what I expected (a Fat Fingered Greed Grab?), but it wasn’t too dramatic either.  1/2 CORRECT, 1/2 WRONG.

Thursday, January 14, 2016, 7:00AM:  A belated Happy New Year!  But it has not been happy for investors in stocks … or energy, with oil dropping to $30 a barrel.  The question on more-and-more minds is whether the markets are adjusting to Federal Reserve policy, and this is another one of those scares that builds up a “wall of worry”, or if the markets are predicting, or maybe causing, a new recession.  Looking back over my adult life, years where we changed Presidents have not been too hot, economy-wise (e.g. 2008, 2000, 1992, 1980).

For those playing The Gas Game, though, we should be in really good shape.  Wholesale gas prices have dropped below $1, reflecting the collapse of oil prices, and with taxes and other costs, I estimate a price to retailers this morning of $1.56.  With the cheapest gas in GR at $1.75, we have room to drop, and I predict we’ll see noticeable downside action through the weekend. — Ed A.

Updated: January 14, 2016 — 6:40 am

14 Comments

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  1. Just a quick visit to say that gas is selling as cheap as $1.419 in the Indy area.

    I’m sure the chronically angry will log in to make sure everybody knows why this is a bad thing. But I’ll just step out before the hijinks ensue.

    Have a great day!

  2. Wow someone is trying to stir up the pot. Stupid comment renbutler.

  3. Chicago spot down again to 84.1 cents. Even dealer wholesale is <$1

  4. I’m not angry with $1.50 gas. But I’m quite angry thinking that we used to pay $4+ for the same gas all based on some prognostications that we knew were faulty.

    So, we were taken for a ride for well over a decade…

    Now, airline tickets……

  5. Looks like things got a little crazy today in Houghton Lake with sub dollar prices…even a 47 cent price showing up on Gasbuddy.

  6. Gas in Cincinnati has hit $1.399. It was just a couple days ago when we broke $1.50. I don’t know if I will hit this tiny pocket of $1.399s with the fuel gage just below 1/2 tank and me not wanting it to get any lower.

    I’m sure I will find gas at around $1.50 tomorrow. At 10 cents difference I hope I can fit this in with my “chronically angry” agenda. 😉

  7. Still in the high $1.70s. Most stations at $1.79 here in Fort Wayne. FW is always very slow to fall. But occasionally we are slow to spike. But only occasionally.

  8. Today, looking at Gas Buddy, there is a 10¢ premium on gasoline in Fort Wayne compared to Indiana in general

  9. Enjoyed filling up for $1.399 today in Fairfield, Ohio.

  10. It was a strange feeling filling up for $1.29/gal yesterday. Inflation adjusted, that’s by far the cheapest I’ve paid for gas. It was about $0.85/gal when I first started driving in the late 90s.

  11. thanks for the spike line update. prices between 1.55-1.65 in RT20 corridor this afternoon..so maybe a little further still to fall..makes the decision to put in a bit or ‘fill it up’ easier in the morning..methinks keep just enough to get by in the tank right now…

  12. Interesting observation Phil. Got me to do a little calculating based on some of the historic low prices I’ve seen. I believe that other than for very brief period in early 1999 (when prices dipped to .799 here), the inflation adjusted price of gas, $1.62 here today is the lowest in 54 years I have been driving.

  13. Somebody shook their fists in anger and broke my rose colored glasses lol. Oil’s up about $7 bucks in the last two days. Looks like that may translate to a spike early next week. I don’t think Iran’s oil has hit the market yet, so it will probably be a roller coaster ride ahead. Hoping to stay below $2 dollars a gallon through the end of February. Longer would be nice of course

  14. Oil’s gone up the last two days, because the ECB (Europe’s equivalent to the Federal Reserve) promised to fire the printing presses back up, and “print” more money.

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