Christmas Coming Early This Year?

Comment on the November 8 prediction: Prices rose that week, to $2.09-$2.15 here in Michigan, so CORRECT.

Sunday, November 22, 2020, 11AM: The end of the calendar year is usually the time for the cheapest gas prices. It is still November and gas stations seem to be celebrating Christmas early, as I filled up for $1.69 at Costco yesterday. However, the price of a barrel of oil is above $40 again, and in the past month, energy stocks have turned from a terrible investment to a great trade, up more than 25%. What does this mean for gas prices? Short term, we avoided hikes the last two Thanksgiving weeks (although last year there was a hard reset the following Monday). I suspect that some of those $1.70’s out there might go back to something like $1.99, but I am not predicting a system-wide hike this. However, that move in energy stocks suggests higher prices are coming in 2021. -EA

6 thoughts on “Christmas Coming Early This Year?

  1. Driving from Lansing to Bowling Green Ky yesterday, passed a couple of Speedways in Indy that were $1.66. That was at least 10-15 cents cheaper than any other stations I had seen. Lots of places were still 1.80s-1.90s, with some $2+

  2. Although there is no such thing as a “holiday price hike”, the current Speedway prices lead me to expect a hike in Chicagoland Monday or Tuesday. Wednesday would be too late.

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