Sunday, December 12, 2021, 9AM: I wrote two weeks ago that “you should be able to find gas under $3 if you know where to look, and those places above $3.40 still need to get with the program.” What happened since then? First, many of the $2.99’s that weekend disappeared, due to a stealthy reset to $3.29 in many places in west Michigan (boo!). This hike anticipated a rebound in oil prices, from $66 to $71, but we are still below the $80 a barrel we were in early November. Then the past week, without further recovery in oil prices, retail competition became the primary driver again, and I saw $2.89 at a Speedway on Leonard on Saturday.
Based on my spreadsheet this weekend, I can make the case for retail prices to drop into the $2.70’s, and that is what we see along the Alpine Ave/Comstock Park/Sparta cooridor, and that’s the best place to fill up today. Lowell has been perplexing, because prices there are usually pretty competitive, but they are at $3.21.
We’re at a spot that if we get any rally in oil prices, I would expect a general reset to the $3.09-$3.19 range. But, if not, you’ll see that race down to $2.79 in other parts of the region. But, prices will be higher in January than before Christmas. They almost always are. -EA