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For drivers, September was awesome!

24 comments Sunday, 10-02-11 | Posted By Ed Aboufadel | Predictions

Comment on the September 13 prediction: prices have drifted lower and lower the past three weeks, and we are in the $3.20′s in some places now. The prediction was CORRECT.

Sunday, October 2, 2011, 10:00AM: It is the beginning of October, so let’s reflect on where we are at with gas prices. Our last price hike was on September 8, with prices rising to $3.89 in the Grand Rapids area. Since then, wholesale prices (via Bloomberg) have dropped 40 cents, while retail prices have dropped 62 cents, and you can find gas for as low as $3.22 in town. The drop in gas prices has mirrored the drop in stocks, as usual. Looking to next week, the 0-cent margin price right now is about $3.15, and when the 0-cent margin price is close to the retail price, that is when a price hike occurs. So, unless wholesale prices drop further on Monday and Tuesday, we are setting up for a price re-set this coming week, to $3.39. Keep an eye on prices while you drive. –Ed Aboufadel

The EU will have stimulus, markets are up.

11 comments Tuesday, 09-27-11 | Posted By Bill Eby | Predictions

This is why it can be bad for lower prices due to an economic downturn. Once there is hope for recovery, prices rebound. A big rise in market prices (11.5¢ for the Chicago spot) and big drops at the pump mean we are due for a spike. Plan on prices going up tomorrow or Thursday.

Prices should continue to fall, but is that a good thing?

12 comments Friday, 09-23-11 | Posted By Bill Eby | Predictions

Yesterday’s market drop will be a welcome relief for consumers at the gas pump. The Chicago spot fell more than 12¢ yesterday, and has fallen more than 50¢ from it’s high a few months ago. Instead of seeing $4 gas, we are now getting close to seeing prices below $3 at the pump.

But is this a good thing? Last time we saw a large drop in gas prices, the bottom really fell out, and didn’t stop until we were below $2. But that was because we were in a recession. And all indicators are looking like we will be entering a double dip sometime soon if things do not change. So while we see something we really like to see, lower prices at the pump, we will also be seeing a weak economy get weaker. I for one hope this isn’t the case.

With market prices where they are, we have a 25-30¢ gap between current averages, and where prices should be. Expect prices to continue the current trend, going lower through the weekend (unless the market explodes today).

Time for consumers to get a break on gas prices

5 comments Tuesday, 09-13-11 | Posted By Ed Aboufadel | Predictions

Tuesday, September 13, 2011, 6:50PM:  Now that the summer driving season is over, wholesale prices have started to drop — 36 cents since the end of August, much of it the past few days.  I estimate the 0-cent margin price tonight at around $3.33 (that’s the floor for retail prices), and the cheapest gas in town is $3.62 right now.  So, we can expect prices to fall the rest of the week and through the weekend.  Great!   That’s a prediction. — Ed Aboufadel

News Flash: Gas Prices Are Too High!

8 comments Thursday, 09-08-11 | Posted By Ed Aboufadel | Commentary

Comment on the August 31 prediction:  Prices rose that day to $3.85, as predicted.  CORRECT.

Thursday, September 8, 2011, 12:20PM:  Future prices have been bouncing all over the place the past few weeks, and yesterday they bounced up, so today we get a price hike to $3.89.  Boo!  Hiss!  Something I saw on CNBC recently did get me thinking — in April 2008, gas was also $3.89 a gallon, and oil was $118 a barrel.  Today, gas is also $3.89 a gallon, but oil is a bit below $90 a barrel.  So, oil is 25% cheaper than 3+ years ago, but gasoline is the same price.  What’s up with that?  From what I read, it seems that gas prices were, believe it or not, lower than they should have been in 2008, or maybe oil prices were artificially high.  (Thank you, speculators!)  Well, whatever the case, if I can sound like a politician for a moment, “We need to do something about these job-killing price hikes!”

Prediction: $3.85 for Labor Day Weekend

3 comments Wednesday, 08-31-11 | Posted By Ed Aboufadel | Predictions

Wednesday, August 31, 2011, 7:15AM:  I just updated my spreadsheets, and we’ve had noticeable jumps in oil and gasoline futures the past few days, while retail prices have been sinking slowly.  I estimate the 20-cent margin price to be $3.86, so expect a price re-set to $3.85 either today or Thursday. — Ed Aboufadel