At midnight, I predicted what local gas prices would do.
Once again, this set up an unstable situation that I expected to be resolved by the corner station dropping its prices. Sure enough, that's already happening, as I paid $3.53 for regular this morning at the corner. Watch for all four stations to match at $3.49 very soon, if they haven't already.This morning, it had already happened, as the corner station was selling regular for $3.49. But that wasn't all of the previous posts predictions.
I expect prices to resume their rise once the lastest skirmish in the local gas war is over.The corner station didn't even wait a full day to take the offensive in the next battle of the gas war, raising the price of regular to $3.75. That's nearly fifty cents in less than a week! So far, the stations down the street aren't taking the bait, as they're keeping their prices at $3.49. I filled up at one of them, as I expect everyone's prices to stabilize at $3.59 or so when this round is over.
As for what this means, the Bonddad Blog asks the right question: Oil Creeping Higher -- At What Price Does It Start to Choke Growth? Unfortunately, neither Bonddad nor any of his commenters have an answer yet.