Crisis on Earth-GG

Comment on the March 8 easy prediction: CORRECT — we are under $2 a gallon.

Wednesday, March 18, 2020, 7:30PM: The crash in oil prices has been brutal and severe: from nearly $54 a barrel on February 20 to about $20 today. Two reasons: the Russian/Saudi oil price war, and, of course, the coronavirus pandemic bringing the world economy to a crawl. Gas prices, at least in west Michigan, are still based on the last hike on February 18 ($2.55), and they have a lot of room to fall, like down to $1.29-$1.39 if wholesale prices stay put. So, another easy prediction is to expect lower prices.

Diesel, though, I don’t know. At my target station on Lake Michigan Drive, it has been stuck at $2.65 since February 18. In a Reuters analysis today, “Gasoline prices have fallen further than diesel prices, in the expectation that fewer drivers will be on the roads even if truck deliveries continue.” That’s not convincing — maybe we will wake up soon to see diesel prices have dropped close to $2. -EA

Updated: March 18, 2020 — 7:29 pm

10 Comments

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  1. Gasoline Rbob and Brent and Crude are all 3 gonna tank today. For some reason reality has not set in on wall street

  2. In my area Speedway has been uncompetitive in lowering prices during this collapse, presently sitting well above sites they are cheaper than in normal times.

  3. Same here. While stations around them continue to drop, Speedways are holding on for dear life. Now a .09 gap between them and their neighbors.

  4. finally seeing prices creep under $2.00 a gallon in parts on NE ohio. only 90c a gallon over spike..must be time to crank it up again soon….

  5. Usually Family Express is the competition leader for us here and they have been dropping very slowly. And as of Friday they haven’t budged at all. Still in the 1.89-1.95 mark and there is room for prices to drop more. I wonder why the halt?

  6. Spot prices continue to plummet, yet pump price drops have slowed to a trickle. Speedway is the price setter here and they continue to resist any further decreases. The Speedways by my house are 10-16 cents higher than their competitors. And their competitors are still making about .50 a gallon, maybe more at this point. Gas seems to be like mortgage rates right now. They created an artificial bottom and refuse to budge believe that bottom. They’re buying for less than. 40 a gallon and still charging for 1.00 a gallon wholesale prices.

  7. finally some downward movement consistent with events – few areas NW Ohio seeing $1.80 and below- even down to $1.70 in places
    people locally commenting at seeing gas below $2.00 a gallon..only if they knew the truth that at that price someone is making some eye watering profit off them….

  8. I was thinking the exact thing, Scala, when I drove by some of the gas stations that are still around $1.95-$1.99 (most of them). It’s like seeing that first digit as a one should be good enough.

  9. Sams club nearby is 1.39. Prices are still as high as 1.92 about 2 miles up the road.

  10. I can’t win. We are finally enjoying the fruits of $1.449 gas a stone’s throw away from me in Cincinnati but because I’ve been working from home the last couple weeks we’ve used a little more than a tank of gas in that time, in both cars. lol

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