Friday, August 12, 2005

The past 48 hours shows you that we’ve got to be very careful about predictions until this current madness passes. On Wednesday, I timed my posting perfectly — as a big rally ensued in oil and gas futures as soon as I posted my prediction. Multiple refinery accidents the past few days, and who knows what else, have caused wholesale prices to soar to close to $2.00 a gallon as I write this. If the wholesale price is $2 a gallon, then the 0-cent margin price is $2.53 and the 20-cent margin price of $2.74! So, will there be a price hike on Saturday to around $2.70? Monday? Will wholesale prices collapse this afternoon? Hard to say, but be vigilant! Vigilance paid off on Monday, as prices got jacked up that afternoon to $2.79, and I got lucky and bought gas for $2.45 in Standale on Monday morning.