Month: October 2016

Maybe this will get more interesting after the election

Comment on the October 3 prediction:  It was CORRECT.

Monday, October 17, 2016, 8:30AM:  Although oil has been up this month, gas prices have remained flat.  I suspect that we have some seasonality factors kicking in, as we tend to see lower prices during the latter part of autumn.  Here’s this weekend’s calculation:  Chicago CBOB is about $1.40, and ethanol is about $1.60, with the blend a typical 90/10 split.  Throw in all the taxes, and that puts the 0-margin price at about $2.12.  I saw that price near Holland and Wyoming yesterday, but we still are in the $2.20’s at most stations in the Grand Rapids area.  So, I think we are good for a few days, but I suspect a price reset would come along on Thursday.  That’s a prediction.

Note to “CMU Pitcher”:  the new Michigan gas tax law doesn’t kick in until 2017.  More details as we get closer. — Ed A.

Wholesale Prices Starting to Perk — Retail to Follow

Monday, October 3, 2016, 8:30PM:  Now that I have written in my last post about “nothing-burgers since July”, volatility is starting to perk up in the energy markets.  Oil is up 10% over the past two weeks, and wholesale gas prices have followed.  I’m calculating negative margins tonight, which almost always signals a price hike is coming up pretty quick.  Looking for $2.39-$2.49 as soon as Tuesday. –Ed A. (c) 2017 Frontier Theme