Tag: wholesale prices

A quiet hike back to $2.55

Comment on the September 7 prediction: Prices reset to $2.54 on September 9, which is pretty much what I said would happen. CORRECT.

Thursday, September 17, 2009, 6:00PM: Wholesale prices have been pretty quiet, but there was a bit of jump last night, which turned into a price reset to $2.55 today. Hard to see right now what’s next, although we are in better shape than in California, which has been dealing with prices over $3 and supply problems.

Back from vacation, and looking for $2.59.

Comment on the August 3 prediction: Prices rose to $2.69 the next day, slightly below the $2.72-$2.82 range I predicted. But, I’ll call it CORRECT regardless.

Tuesday, August 18, 2009, 4:20PM: I spent last week near Cheboygan. Prices were frozen at $2.69 up there all week, while the games continued in Grand Rapids. Let’s see where we are today. Retail prices range from $2.41 to $2.64 right now, according to GasBuddy. NYMEX indicates wholesale prices around $1.88, which leads to a calculation of $2.41 as the 0-cent margin price — of course! So, I think we’ll see a hike before the end of the week, with the new price in the neighborhood of $2.59. — Ed Aboufadel

Coming up next, price re-set to $2.49.

Comment on the July 6 prediction: As predicted, prices have been dropping steadily, down to $2.25 along Lake Michigan Drive, in fact. So, the prediction was CORRECT.

Sunday, July 19, 2009, 11:00 AM: Retail prices have fallen significantly this month, lagging but in line with the drops in the wholesale price as indicated by NYMEX and elsewhere. However, last week’s rally on Wall Street started to affect the energy markets late in the week, and NYMEX prices rose 13 cents a gallon. We are at the point where rising wholesale prices are colliding with dropping retail prices, which means a price hike is on its way, perhaps as soon as Monday. I predict a re-set to $2.49 a gallon, except for the handful of gas stations still at that price. Yes, I’m talking to you Speedway Ada! — Ed Aboufadel

Lower, lower, lower.

Comment on my June 30 posting: Prices reset to $2.69 on July 1, except for places where it had never fallen below $2.69.

Monday, July 6, 2009, 6:30PM: Wholesale prices have dropped significantly in the past week. With today’s close, I have the 0-cent margin price at a pretty $2.25. So, unless there is a dramatic reversal on NYMEX the next few days, the prediction is lower prices, with drops of at least 2-4 cents per day.

Gas prices to maintain $2.45-$2.69 range

Comment on my June 23 posting: Prices have continued to fall for a week, so the prediction was CORRECT.

Tuesday, June 30, 2009, 9:30PM: I just want to share what I am looking at right now. The moderate jump in wholesale prices this week has given us a 0-cent margin price of about $2.45 and a 20-cent margin price near $2.69. Yet, this is also the range of prices right now in the area, with gas below $2.50 in Allendale and at $2.69 in Ada and Lowell. So, we could get a price hike before Independence Day to $2.69, but some places wouldn’t notice. Or, the stations at $2.69 could drop their prices while stations near $2.49 will probably keep their prices constant. So, I don’t feel like a prediction is warranted, but I hope readers understand the underlying dynamic right now. — Ed Aboufadel

Lower prices expected, but Ada & Lowell remain high

Comment on my June 11 posting: Prices made it to $2.69 last week, and then lower this week, so my prediction was CORRECT.

Tuesday, June 23, 2009, 4:30PM: The stock market/energy market correlation continues. Stocks topped out recently on June 12, a day after the price of a barrel of oil did, while NYMEX waited until June 16. Since then, NYMEX has dropped 20 cents, and Chicago wholesale prices are down nearly 50 cents since June 4. That means the good news for us will continue, as the 0-cent margin price using Chicago wholesale prices is about $2.39. That means prices will continue to fall by several cents a day at least for the rest of the week. Hey, Ada and Lowell — get with the program!

— Ed Aboufadel

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