Wednesday, September 23, 2009, 1:00PM: With today’s DOE report showing continued growth in the supply of gasoline, due to poor demand, NYMEX prices are already dropping, so we can expect retail prices to continue to drop. No price hike this week, and we are heading for the $2.30’s. — Ed Aboufadel
Tag: price hike
Comment on the August 18 prediction: Prices rose on August 20 to $2.59, so the prediction was CORRECT.
Monday, September 7, 2009, 6:00 PM: The past two weeks have been very busy for me, but gas prices have been tame, except for the unusual price adjustment a week ago, where Speedway and others raised prices a few cents, but there was no state-wide reset of prices. That is going to come this week, particularly with gas down to $2.26 this weekend in Lowell. I predict a price hike, perhaps as soon Tuesday, to somewhere in the range of $2.49-$2.59. I know many stations are $2.49 today, so maybe they don’t see a hike, but it is hard to be more precise right now. Looks like I am in agreement with Bill. — Ed Aboufadel
Comment on Thursday’s prediction: We got a hike on Friday to $2.59. CORRECT.
Monday, August 3, 2009, 2:00PM: Once again, stocks rally and so does energy prices. We are up at least 10 more cents at the wholesale level since Thursday, so another price hike is on its way. Look for retail prices in the $2.72-$2.82 range Tuesday or Wednesday. So, I’m agreeing with Bill! — Ed Aboufadel
Comment on the July 6 prediction: As predicted, prices have been dropping steadily, down to $2.25 along Lake Michigan Drive, in fact. So, the prediction was CORRECT.
Sunday, July 19, 2009, 11:00 AM: Retail prices have fallen significantly this month, lagging but in line with the drops in the wholesale price as indicated by NYMEX and elsewhere. However, last week’s rally on Wall Street started to affect the energy markets late in the week, and NYMEX prices rose 13 cents a gallon. We are at the point where rising wholesale prices are colliding with dropping retail prices, which means a price hike is on its way, perhaps as soon as Monday. I predict a re-set to $2.49 a gallon, except for the handful of gas stations still at that price. Yes, I’m talking to you Speedway Ada! — Ed Aboufadel
Comment on my June 23 posting: Prices have continued to fall for a week, so the prediction was CORRECT.
Tuesday, June 30, 2009, 9:30PM: I just want to share what I am looking at right now. The moderate jump in wholesale prices this week has given us a 0-cent margin price of about $2.45 and a 20-cent margin price near $2.69. Yet, this is also the range of prices right now in the area, with gas below $2.50 in Allendale and at $2.69 in Ada and Lowell. So, we could get a price hike before Independence Day to $2.69, but some places wouldn’t notice. Or, the stations at $2.69 could drop their prices while stations near $2.49 will probably keep their prices constant. So, I don’t feel like a prediction is warranted, but I hope readers understand the underlying dynamic right now. — Ed Aboufadel
Comment on my May 27 posting: On Thursday, May 28, prices started to rise at the end of the day to $2.75. Since then, there have been hikes to $2.85 on Tuesday and $2.95 today.
Thursday, June 4, 2009, 6:35PM: I haven’t been very helpful with the price hikes this week, but Bill has! Let’s reflect a bit on the past five weeks. We have gone from $1.99 a gallon in Standale on April 27 to $2.95 a gallon today. Why? First we have numerous reports of mild gasoline shortages in the Midwest. Good job, gasoline industry, in managing this vital part of our economy! Second, the rise in gasoline prices has mirrored rises in the price of a barrel of oil (almost $20 a barrel) and in the Dow (almost 700 points) since April 27. Yes, as I’ve written before, we are dealing with speculators again. The price is being influenced by people who are demanding oil and gas as investments, rather than as fuel. While in the long run, higher prices will inspire new and cleaner fuels, which I support, in the short run, just as we are digging ourselves out of recession caused in part by financial geniuses who bought and sold “default swaps” and other products they couldn’t afford to support, prices spiking to $3 could cause it all to grind to halt again, like it did last summer. Great. Hopefully these artificially high prices in Chicagoland will soon attract cheaper gasoline from other parts of the country.