Comment related to the June 13 posting: The series of rapid hikes of two weeks ago stopped, and prices started to decline slowly, as predicted.
Sunday, June 19, 2022, 2PM: In response to commentary that gas prices are much higher than the last time oil prices were in this range, there have been several reports in the media about reduced refining capacity for gasoline, leading to supply/demand imbalance in gasoline wholesale markets, pushing gas prices higher. I buy this argument, because the surge in wholesale and retail prices since the beginning of May has felt more like panic buying and/or a “short squeeze”, rather than an orderly response to increased summer demand.
This past week, though, “watching the tape” suggests that the surge is over. Retail prices have started to drop from that Michigan high of $5.19 on June 6. Just as important, energy stocks such as Valero (which has a major gasoline footprint in the US) were crushed the past week, signaling that the money has been made in this bout of gasoline inflation.
At the moment, the 0-cent margin price for gasoline in west Michigan is in the neighborhood of $4.69, so there is significant room for prices to fall. If possible, avoid stations charging more than $5 right now, although I know that is most of them. -EA
Buying only $20 as needed anticipating price drops.
RBOB up 10 cents. I have a feeling any relief will be very shortlived.
I am hoping for $4 by the 4th.
$4.72 Lafayette Indiana for a fill-up. Best I’ve seen for awhile.