Well, the DOE report was pretty rough, and gasoline and oil has been trading up on the news that the U.S. will turn sharply colder and that OPEC may again cut production when it meets in December. Wholesale gasoline is back up to 1.58.
The “Chicago Premium” we’ve been seeing should let local prices go down a bit, as our local storage has gone up after 3 weeks of decline. The midwest is sitting on nearly 52 million barrels of gasoline, down from nearly 55 in the beginning of October, but up from 50 last week. Prices might fall down to 2.29, but I am anticipating another hike possibly next week. Its hard to tell with the Chicago Premium falling and wholesale prices rising. We shouldn’t see a huge drop, but we have room to fall a few cents.
It was interesting that Americans spent $3 billion less on gasoline just last month due to falling prices… and now that money will likely get injected back into the U.S. economy instead of OPEC’s.
Is OPEC getting greedy (talking about further cuts) or is it just me? When their target price was $22-$25 a barrel just years ago, now all of a sudden they aren’t happy with $60? Arrogant.
~Patrick
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