Wednesday, October 5, 2005

NYMEX futures prices have drifted lower since Friday, but retail gas prices have been slow to follow. One of my “friends in the industry” writes me today to say that wholesale prices from the hub in Muskegon have been running 20 to 25 cents ahead of NYMEX futures, which would explain why prices have hardly moved this week. So, it is coin flip to me about what happens to prices the rest of the week: they could head towards $2.50, if NYMEX is to be believed, or stay near $2.90 if wholesale prices really are out of whack with NYMEX. As for me, with only a quarter tank, I’m filling up tomorrow morning, maybe down in Wyoming.At some point in the future, I will comment on the proposal to only allow price hikes on Monday, but you can read about it at this web site.

There was no price hike, but prices fell very slowly.

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