Comment on the October 23 posting: It wasn’t really a prediction, and what we saw in the past week was prices reset in parts of Indiana, but not in Michigan.
Sunday, October 29, 2023, 8:00 AM: In late September, gas prices reset to $3.79 a gallon in Michigan, oil was above $93 a barrel and going up, but wholesale gas prices were sliding, reflecting the switch from “summer gas” to “winter gas”. Then, oil dropped by more than $10, wholesale gas prices followed, and since early October, we’ve had a pattern where oil and wholesale gas prices have been lower and stable, and retail prices have slooooowwwwwly followed those other prices lower, too. For instance, this morning, $3.02 a gallon in Hudsonville, and finally, prices below $3 in other parts of the state, specifically in South Haven.
So, what is next? We are in a position where any jump in wholesale prices will lead to a system-wide reset, maybe to $3.39 as I was calculating last week. But, there is no obvious prompt on the horizon. So, we’ll keep an eye on the markets for clues, and this is definitely a time to shop around for lower prices. -EA