Comment on the July 7 prediction: Right as rain, as prices rose in GR to $3.69. CORRECT.
Wednesday, July 10, 2013, 9:00PM: Just updated my spreadsheet. Oil up to $106.52 a barrel. It was $94 two weeks ago. NYMEX gas bubbling up in reaction — 26 cents more than July 1. Even though we had one price hike this week, I wouldn’t be surprised to see another one in the next 36 hours, with a new price in the $3.79-$3.89 range. That’s a prediction. –Ed Aboufadel
So here is what I just read this morning. Link is at the bottom.
Egypt isn’t the only force at work, said Stephen Schork, editor of The Schork Report, an energy industry newsletter.
There’s been huge demand for crude oil from refiners as domestic demand has surged, Schork said Wednesday. Some 20 million barrel of crude were drawn down from domestic storage in the last two weeks, the most since the Energy Department began tracking supplies in 1983. Daily gasoline production at refineries has increased by some 2.1 million barrels in the last three-and-a-half months.
Some of the demand may be coming from refiners, Schork said. BP (BP +1.13%) is reopening an Illinois refinery after doing some upgrade work.
Add to those forces the psychological pressure Egypt is exerting on energy markets. And don’t forget heavy buying by speculators.
Will pump prices uniformly rise above $4? Probably not, Schork said. The summer driving season, which increases demand for more expensively refined gasoline, will end in less than two months. Then, refiners can blend in cheaper gasoline.
But here’s the good news: He does think that energy markets are in a bit of a bubble. As a result, he doesn’t see the price run-up lasting for very long. If pump prices rise too far and too fast, consumers will curtail their driving.
“This thing will flame out,” he said.
http://money.msn.com/saving-money-tips/post–higher-oil-prices-are-pushing-pump-prices-higher
I can’t see gas ever under $3.50 again, and pushing over $4.00 regularly and even staying over in the next 8 to 12 months. My two cents is that most people have already curtailed driving. I am driving 40% less than I was 5 years ago, and that is with nothing changing in my employment, or the household income. There are a lot of people out there that have had flat or declining incomes, and are no longer driving recreationally. Gas is almost double what it was, electricity is 20% more, property taxes are up even though home values are flat, garbage and sewer fees are up, groceries are up. Lots of costs are up with prospects of better employment down. The Fed is going to continue printing fiat money, pushing up costs of foreign goods.
$3.699 is the new Ohio price.
Looks like $3.85 in Grand Rapids this morning.
Geez, that was quick. Up to $3.85. It’s funny because the increase in price of oil is based on futures, not the current inventory/stock piles.
Looks like all the speedways on my route home are set to 3.85 on gasbuddy.
It’s been a while since I have seen the uniform hike.
Guess i know what the Meijer price will be at 2:00, when they make their changes.
Same in Kzoo area 3.85.
Just saw $3.85 at greedway 44th and Eastern in Grand Rapids
Two spikes in one week…I bet the Greedway execs are partying hard now!!
Here we go again, just saw this:
Chicago CBOB had been rising throughout the week from an 11.00-cent discount to August NYMEX RBOB last Friday. The outage of the second-largest of three CDUs at the Whiting refinery further boosted an earlier gain of 3.50 cents per gallon.
With a Zero Margin Price to gas retailers of almost $4.00, are we in for a Saturday hike?
why is that every time gas prices goes up the explanation comes from rather unknown part of the sector/industry instead of our elected lawmakers providing an explanation? what else is there job there after getting our votes? oops I forgot…..they are busy securing campaign financing for their next re-election where they can buy best of the arguments and technology to lure us in to voting them again! silly me, I will re-elect them! sure?
Surely they wouldn’t do three spikes in less than 7 days would they? I’d say if Chicago Spot goes up again today (and all commodities pricing goes up on Fridays right), then we’ll be in for another crank up Monday or Tuesday.
I’m working in Toledo and still seeing a couple places in the upper $3.30 range.
Just keep on protesting natural gas fracking while complaining about gasoline prices. Just keep pumping millions of tons of pure poison in the atmosphere yearly from burning oil products. Just keep pumping billions of $$ into nations that hate us. I don’t understand our addiction to this old technology when we are the largest consumers of new technology. I often wonder who is really behind promoting these foolish fracking protests and if these protesters even realize that half of them produced enough carbon monoxide to kill a hundred people on their drive to the protest. I’m pretty sure who benifits from this outright stupidity and it’s not me.