After the Surge

Comment on the July 22 prediction:  No, they didn’t reset the system until the beginning of August, so WRONG.

Thursday, August 20, 2015, 11:15AM:  So, I take a few weeks off for some academic travel and some relaxing and everything goes crazy.  Why are we so vulnerable to the refinery in Whiting?  Just to show you how crazy it was last week, here are two screenshots from Speedway’s web site on August 11 and 12, from a station in Fort Wayne.  The nice thing: with a Speedy Rewards card, they gave you the pre-hike price for the rest of the day.  Do they do that in Michigan?

Aug 11-12 Hikes Speedy RewardsNow, what’s next?  Since the Uber-like “surge pricing” last week, Chicago CBOB has gone from $2.51 to $1.96, and I bet it is lower today.  Oil prices are in free-fall again, down near $40 a barrel.  And those $2.95’s I see around the Grand Rapids area look rich given the CBOB price.  (I see we are down to $2.82 in Kentwood as I write this.)  So, expect prices to keep falling, probably through the end of August.  I’m not going to be in a hurry to fill up. — Ed A.

Updated: August 20, 2015 — 11:20 am

102 Comments

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  1. Thanks for the kind words, Patrick. It’s good to see knowledgeable and reasonable people around here.

    BTW, Indy’s average price has matched its six-month LOW, and the US has reached BELOW its six-month mark.

    I’m going to be happy about that, because I know that it’s actually okay to be happy.

    🙂

  2. Goldman Sachs says oil will settle this fall to about $38 bbl. rising to about $42 bbl. I don’t know it I buy it. The oil cartels do not want cracking or oil sands developed. So maybe!

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