From $3.19 to $2.71 to ???

Comment on the May 20 prediction: $3.19 on May 22, as predicted. No hikes since then.

Sunday, June 3, 2018, 6:00PM: Oil prices recently maxed out on May 21, leading to a hike to $3.19 the next day. Since then, for a variety of factors, oil has dropped 8% helping gas prices to fall to as low as $2.71 in Sparta. We’ve seen this before, as an on-going drop in wholesale prices leads to retailers aggressively cutting what they are asking for a gallon, keeping their margins razor-thin. As a result, any rise in wholesale prices triggers a price hike. That’s due to occur this week, and with it, a reset back to … $3.09? -EA

Updated: June 3, 2018 — 6:26 pm

12 Comments

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  1. not much justification for a spike NW Ohio area..lots of 2.80+ prices still around so 30c margin still. A few 2.699’s creeping in, and oil prices still falling. Trend recently seems to be maintaining healthy margins so who knows, now the ‘summer driving season’ is now underway

  2. Oil is down nicely so far today, but spot sure is stubborn going up 0.19 cents. Maybe Big Red will pull the trigger on that minuscule increase?

    On April 12th oil was at 67.07 with spot a touch above 1.90

    Today oil is at 64.62 and spot is at 2.07. Is there extra padding built in for when the squirrels climb the fence again at BP Whiting??

  3. I don’t know, Chris. Everything points to a lower spot. Must be those darn market forces at work.

    U.S. crude production climbed in March to 10.47 million barrels per day, a monthly record, data from the Energy Information Administration showed last week.
    U.S. drillers added two oil rigs in the week to June 1, bringing the total to 861, the most since March 2015, energy services firm Baker Hughes said on Friday.
    OPEC is expected to agree to raise output to cool the market amid worries over Iranian and Venezuelan supply.

  4. Ohio jumping to $2.959.

  5. Grand Rapids area to 3.09

  6. Same with SE MI, $3.09. Spot at $2.73 with a statewide avg of $2.98. Looks like the .35 margin is the new norm.

  7. speedeway to 2.959 NW ohio rt 20 corridor. still a lot 2.699’s around . wow 40c margin..playing on the ‘gas prices’ are sky high in may and june..without the actual justification

  8. Chicago (and it looks like Indiana) got a hike last week so we’re safe with spot prices dropping.

  9. Correction to my previous post–Spike Line @ $2.73, not Spot!No matter the verbiage, it’s still a .36 margin.

  10. Chicago Spot ended the day the lowest since May 2nd.

  11. well that didn’t last too long..the lone speewday that tried 2.959 on Tuesday quietly retreated to match everyone else’s 2.829 48 hours later

  12. Due tomorrow in Chicagoland…a hike that should still be a dime below the previous hike

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