Boy, was I WRONG.

Comment on Monday’s prediction:  Spectacularly WRONG!

Friday, November 21, 2008, 3:00 PM:  As I’ve indicated the past few months, I think the dramatic decline in energy prices is tied closely to the collapse of some our financial institutions, and this is also being reflected in the stock market.  I have to say, though, that I thought the worst of the collapse was over in October.  Since Election Day, stocks have fallen around 25%, oil has dropped about 28%, and NYMEX gasoline futures more than 30%.  I actually saw the front-month NYMEX price under $1 a gallon yesterday.  So, other than the lame attempt at a price hike last week, there has been no hints of one since September.  Remember 10 weeks ago when gas was $4.25 a gallon?  Based on today’s trading, we are looking at a zero-cent margin price around $1.55, and with prices in the $1.68-$1.89 range, we still have room to fall.

If the stock market stabilizes, then the energy markets will, too, and retail prices will stop falling.  Until then, no price hikes.  Enjoy?

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