Wednesday, November 16, 2005

1:00PM: Last week’s scattered price hike indicates that we can start using the NYMEX futures prices again with confidence. Since the price hike, the futures have dropped almost a dime a gallon, putting the 0-cent margin price at about $2 even today. With $2.07 on Alpine the lowest price right now, and an average around town of about $2.14, I could see them going either way tomorrow with a price hike. It depends on what happens on NYMEX this afternoon. If they rally this afternoon, then there should be a price hike tomorrow, to about $2.20. If NYMEX stays below $1.50, I don’t think we’ll have a price hike. You can see the NYMEX Gasoline price on CNBC. NYMEX prices didn’t get to $1.50, and in fact went lower, and then there was no price hike, so the prediction was CORRECT.