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.