Monday, March 24, 2003

Oil and gas futures plunged last week, as the war with Iraq got started. The drop in the futures corresponds to a 30-cent drop in retail price. Based on closing prices on Friday, the retail price, with no profit to the retailer, would be $1.30, and with their usual midweek-price-reset profit, is about $1.51. So, clearly, prices, which fell a lot last week, should fall further this week, with no price hike. However, the progress of the war may throw this prediction into jeopardy. (That’s my way of being a weasel, if necessary!) There was no price hike last week, so I was CORRECT, although not with 100% certainty.