Comment on the May 9 prediction: The implied prediction of hike over $3 was WRONG, despite on-going issues last week with the Colonial pipeline.
Sunday, May 16, 2021, Noon: Based on the numbers, gas over $3 last week would not have been a surprise. What held them back? One theory is that the Speedway/7-11 deal is being called “illegal”, yet still closed on Friday. Perhaps they didn’t want any extra media attention.
So, what happens next? Gas Game readers know that Speedway had driven the ups-and-downs for gas prices in the Midwest for years. We’ll have to watch carefully.
And I still think we are back to $2.99 or higher this week. -EA
Based on behavior of other actors I would anticipate if Speedway disappears we might see less price cycling in the Chicago market. But also I expect the daily average price paid will be higher with Speedway gone. Both 7-11 and the Shell-Circle K alliance seem to like higher margins that Speedway. Thorntons has always followed Speedway’s lead but I suppose they could assume the role of price setter.