Comment on the June 25 prediction: It is like they are teasing me, raising prices on Monday, June 26, after I wrote the day before “the evidence is not compelling that a hike is imminent” and if they did hike, “we would be looking at $3.49 a gallon”. Instead, $3.59 in Michigan. Boo! WRONG.
Sunday, July 7, 2023, 7:00 PM: We’re back after the holiday break last weekend, trying to determine what is happening with gas prices. Oil prices jumped up 5% this past week, but gas prices, at least in Michigan, seemed unnecessarily elevated, particularly as ethanol prices reset 20 cents lower. Retail prices have worked their way lower, and in Fort Wayne, there are several stations under $3. Using RBOB prices, I am estimating the 0-cent margin price to be in the $3.30’s, and in west Michigan we have a lot of stations there, and also a few up in the $3.50’s. If oil prices hold above $73 a barrel tomorrow, I think we see $3.59 across the board again. Recommendation: fill up below $3.40 if you can find it. -EA