Monday, November 7, 2022, 10AM: I am sorry I have been slow to post — I’ve been a bit busy. And so has the wholesale markets, in a way that continues to stoke our Midwestern aggravation. Conspiracy theorists might be wondering if someone is trying to affect the election tomorrow.
Here’s what I mean. Back to Tuesday, October 25th, and oil prices have been stable. The raw quote for Chicago CBOB was $2.90 a gallon, which corresponds to 0-cent margin price of $3.79. Retail prices had finally dropped below $4 in Michigan and nearby states, but still had room to drop by a few more dimes.
Then, we get a CBOB ramp up to $3.40 into the beginning of November, which prompted a retail hike on Thursday to $4.29. (Nothing obvious in the news to explain the ramp, like more refinery troubles.) But as soon as that hike is in place, CBOB drops back to $2.90. Do retail prices drop back below $4 this past weekend? Yeah, no. Meanwhile, our Gas Buddy posted this tweet yesterday, reporting that the national average is $3.78.
You have the right to remain annoyed. And unclear what is to blame. This is clearly a regional phenomenon, and not a national one. -EA