Stubborn

Wednesday, March 22, 2023, 3:00 PM: I was waiting for the Fed decision to hike interest rates (one last time?) before posting, because sometimes that can create volatility in stocks and bonds and the energy market. Nothing obvious yet, but let’s turn to oil, which is back to $70 a barrel after a trip to $65 last week. Oil ended 2022 at about $80, so you’d think that lower oil prices would mean lower gas prices. But, we’re in our typical December-May runup of prices, so we end with what we’ve seen lately — a lot of stations stubbornly stuck at $3.59 after the March 15 hike, rather than heading lower. I don’t think the retailers are trying to get away with something, because wholesale prices for gasoline have been relatively stable since the beginning of the year.

Gas buying strategy? As I’ve written, look for the neighborhoods where there is competition, especially from K&G. There is room for prices to drop to $3.19, but only if there is competitive pressure to do so. Absolutely no sign of a hike past $3.59. -EA