Tag: WOOD

What’s next? $3?

After yesterday’s spike up to $2.85 we saw the bottom completely drop out of the Chicago market, and wholesale gas jump 13 cents to $2.29.  This was for delivery to the Wolverine Pipeline, which covers the lower part of Michigan.  With Speedway jumping up to $2.85 before this climb, and the price being specifically set for Michigan, $3 has just jumped into the realm of possibility for Michigan drivers.

And it isn’t just me saying this.  Some guy calling himself a petroleum analyst for GasBuddy.com, Patrick DeHaan, also believes this is so.  He said so on WOOD-TV 8.

So, I’d hate to say this, but $2.85 or less is looking pretty good come tomorrow at 9:30, as we may see Speedway break the $3 barrier, or come close at $2.99.  Hold on to your hats, the pain hasn’t stopped, yet.

I am not sure what this means for Indiana and Ohio.  It is quite possible we, too shall see a spike tomorrow as well.  But it is hard to tell where we are getting our gas from.  NY Harbor, Group 3 and Gulf Coast gas prices are almost 35 cents lower than the Chicago spot, and I wouldn’t be surprised if gas from one of those areas makes its way to this area.  The price in this area will be lower, but to what extent?  A spike is a possibility, but I’m thinking it would be much like last week, where we will ride out the last spike.  But jumping into the mid to upper $2.80s wouldn’t shock me at all, either.

Price jump soon (today?) to $2.19?

Looking at morning numbers briefly this morning before an interview on WOOD AM1300, I think I might have to announce that I’m expecting a price hike soon to $2.19! A quick look at closing prices on the market from late last week and yesterday:
Thursday close $1.42
Friday close $1.47
Monday close $1.54

As you can see, wholesale prices are up a whopping 12-cents since just Thursday! While I believe Speedway’s price hike Friday to $2.15 was over done to provide more profit for their Saturday/Sunday Speedy Rewards discount, I now believe that they will raise prices again to keep up with wholesale cost.

Another contributing factor is the switchover to Summer blended gasoline which costs more to make. Refiners were required starting Friday (May 1) to only sell Summer blended fuel after that time. Retailers have until June 1 to make sure they have it in their tanks.

At last check, the Chicago market is suffering a huge Chicago Premium for RBOB gasoline (ethanol blended gasoline, which nearly all retailers sell). The Chicago region was paying nearly 18-cents more per gallon than any other region. Chicago is currently trading RBOB Unleaded at a 21-cent PER GALLON premium to NYMEX pricing.

I’m led to believe we’ll see a jump to between $2.15-$2.25. I’ll pick $2.19.

Gasoline demand is starting to rise so don’t think this is a shock to see higher gas prices. At least we’re not paying $3 or $4/gallon!

Patrick

Still feeling Ike down South

As prices continue to fall here in the Midwest, the South has not yet forgotten the sting and pain that Hurricane Ike brought, roughly 3 weeks ago. Atlanta, GA is still suffering from periodic gas shortages and high prices. The same is occurring in other locations in the South. Here in Michigan it is relatively quiet with prices falling into the $3.50’s.

On the other side of Michigan, prices have dropped as low as $3.27 in Ypsilanti! Will we see that here, and furthermore, will we see under $3 anytime soon? YOU BET! I am definitely expecting prices to drop below $3 between now and mid-November (BUT… this depends on Hurricane season of course!) We also are looking forward to some refinery expansion projects coming online!

Projects due to be completed soon:

  • Sunoco @ Philadelphia, PA (early 2009): Gaining 15,000bpd from a new Fluid Catalytic Cracker unit and 40,000-50,000bpd fro a new HDS
  • Sunoco @ Toledo, OH (end 2008): 10,000-15,000bpd expansion
  • ConocoPhillips @ Wood River, IL (2009): 135,000bpd, Crude Distillation Unit, Delayed Coker Unit projects
  • Holly @ Navajo, NM (Q4, 2008): 20,000bpd expansion
  • Motvia @ Port Arthur, TX (2008): 45,000bpd expansion (plus an additional 325,000bpd to be online in 2010!)
  • Holly @ Woods Cross, UT (Q4, 2008): 20,000bpd expansion
  • Sinclair @ Salt Lake City, UT (2009): 60,000bpd expansion 
  • Big West Oil @ Bakersfield, CA (2008): 19,200bpd (new Fluid Catalytic Cracker), 25,000bpd (Distillate Hydrotreater), 9,000 (Alkylation unit)… total of 53,200bpd!
  • CHS @ Laurel, MT (Aug 08): 15,000bpd expansion

Wow! Going back in time, we’re also at 17,610,000 barrels of daily capacity at U.S. refineries, almost 500,000bpd more than when Katrina hit in 2005, and the highest amount in history!

With slowing demand, I’ll bet some refiners are having second thoughts…

Look for prices to continue to fall!

Media Inquiries

We’ve been fortunate here at TheGasGame.com to have overwhelming help from the local media in helping consumers better understand “The Gas Game” and how to fill-up for less. Our predictions can frequently be heard on local media outlets as well as out-of-state outlets. A short list of stations that have used our authors includes WOODTV8, WZZMTV13, WOOD AM1300, WSNX FM 104.5 FM, CMU RADIO MT PLEASANT, and MORE! . Out of state, we’ve been heard on WNXT 99.3 (Ohio), and WTOP (Washington, D.C.). On the internet, we’ve been mentioned on many many public and private internet forums as well as Reuters, USA Today, and many online newspapers! If you’re from a media outlet we’d love to talk to you! We frequently provide interviews via television and radio to address high gasoline prices and what can be done, as well as providing information on why prices rise. This can be very helpful to your audience who is likely hurting as a result of higher gasoline prices. We like to use our knowledge on prices to help consumers.

To expedite your media related inquiry/request, we’ve set up a system that will automatically notify both Bill and Ed of your request. It will automatically forward your e-mail to their most frequently used accounts so that you will receive a response in faster fashion. Response time to your e-mails has been very good, and we’re hoping this way of routing your requests will enhance response time. To request an interview with Bill or Ed please e-mail (med@thegasgame.com). If your request is in response to a recent post on our blog, please make sure to include what story (and link if necessary). This will expedite your request.

Some of our interviews and their date: April 4, 2005: WZZM TV 13 | March, 2006: WZZM TV 13 | August, 2006: WOOD TV 8 | January, 2007: WZZM TV 13 Read story | April 2, 2007: WZZM TV 13 Read story | May 4, 2007: WOOD TV 8 Read story | May 23, 2007: WOOD TV 8 | May 28, 2007: WOOD AM 1300 (LISTEN) | June 11, 2007: WOOD TV 8 | June 26, 2007: WOOD TV 8 | July 11, 2007: WOOD AM 1300 (LISTEN) | September 4, 2007: WOOD TV 8 | September 11, 2007: WOOD AM 1300 (LISTEN) | September 18, 2007: WOOD AM 1300 | October 30, 2007: WOOD TV 8 | November 5, 2007: WOOD AM 1300 (LISTEN) | November 26, 2007: WOOD AM 1300 | December 14, 2007: WOOD TV 8 | December 13, 2007: WOOD AM 1300 (LISTEN) | January 3, 2008: WOOD AM 1300 | January 4, 2008: WOOD TV 8 | February 25, 2008: WOOD AM 1300 | February 25, 2008: WOOD TV 8 | March 7, 2008: WOOD AM 1300 | March 7, 2008: WOOD TV 8 | April 1, 2008: WOOD TV 8 | April 14, 2008: WOOD AM 1300 | April 14, 2008: WOOD TV 8 | April 23, 2008: WOOD TV 8 | April 24, 2008: WOOD AM 1300 | April 29, 2008: WOOD AM 1300 | April 30, 2008: WZZM TV 13 | April 30, 2008: WOOD TV 8 | May 7, 2008: WOOD TV 8 (WATCH) | May 7, 2008: WOOD AM 1300 | May 19, 2008: WOOD AM 1300 | May 20, 2008: WSNX FM 104.5 | May 20, 2008: WZZM TV 13 | June 20, 2008: WOOD TV 8 | July 21, 2008: WOOD TV 8 | July 22, 2008: WOOD TV 8 | July 22, 2008: WOOD AM 1300 | July 25, 2008: WZZM TV 13 | July 29, 2008: WZZM TV 13 | August 7, 2008: WZZM TV 13 | August 7, 2008: WZZM Online Q&A | August 11, 2008: WOOD AM 1300 | September 12, 2008: WOOD AM 1300 | September 15, 2008: WOOD AM 1300 | September 15, 2008: CMU RADIO | September 16, 2008: WOOD TV 8 | October 7, 2008: WOOD AM 1300 | October 8, 2008: WOOD TV 8 | October 9, 2008: WOOD AM 1300 | October 15, 2008: WOOD TV 8 | November 14, 2008: CMU RADIO | November 13, 2008: WOOD TV 8 | December 9, 2008: WOOD AM 1300 | January 1, 2009: WOOD TV 8 | January 5, 2009: WOOD AM 1300 | February 26, 2009: WOOD TV 8 | February 26, 2009: WZZM TV 13 | February 26, 2009: WOOD AM 1300

August, 2005: WZZM TV 13 | March, 2006: WZZM TV 13 | July 11, 2007: WOOD TV 8 | September 22, 2008: WTOP RADIO (WASHINGTON, D.C.) | November 9, 2008: CHICAGO TRIBUNE | November 11, 2008: Holland Sentinel | November 17, 2008: WOOD TV 8

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