Tuesday, July 15, 2003

Over the last two weeks, it is as if the Chicago Summer Premium has disappeared. However, at the same time, oil prices have been rising, now over $31 a barrel. (Who to blame: problems in Iraq, the Fed’s easy money policy?) With no summer premium, the zero-margin price today is $1.40. With a full 10-cent premium, it is $1.50, which is the current price at many places around town. I’m going to assume that there isn’t much summer premium right now, so prices will drift lower, and no price hike this week. There was no price hike. CORRECT!