Wednesday, November 26, 2014

Gas bounces off the floor

It's time to check my predictions from Local gas now $2.77.
Yesterday, the three stations down the street lowered their price one more notch to $2.77.  That didn't take long.  It's only a matter of time before the corner station joins them.  In fact, it may have done it this morning.
It had.  Sunday and Monday, all four stations in the neighborhood were selling regular for $2.77.
Prices look they'll continue to fall, as the national average is now $2.82 and falling.
Prices dropped spectacularly during the day yesterday, as the three stations down the block were selling regular for $2.65.  That's as low as I expected prices to go this year.  However, the corner station actually raised its price to $2.95.  It was almost enough to prompt me to post the jumping over the limbo bar graphic.  Then I saw that the next prediction might just have come true.
However, the floor may be in sight, as WTI is back above $75 and Brent has climbed over $80.  Let's see if they manage to stay above these levels of support on Monday
Last night, the three stations down the block raised their prices to $2.85, while the corner station remained at $2.95.  It looks like gas prices hit the floor and bounced, making the first half of my quoted passage appear good.  The second part of the prediction didn't hold up as well.  While Oil-Price.Net shows that WTI stayed above $75 and Brent remained above $80 on Monday, both fell on Tuesday, WTI to $74.09 and Brent to $78.33.  Back to $70 and $75 as support levels for now.

The local jump in prices reflected larger trends, as GasBuddy shows the national average bouncing off $2.80 a couple of days ago to $2.81 and the Detroit average briefly falling to $2.83 before sharply rising to $2.86 and leveling off.  No wonder the price jumped back up so sharply; the price environment would not support it.  The neighborhood price should be no lower than $2.75.  That's where I expect all the stations should be within a week, possibly even by next Monday, when the opportunity presented by Thanksgiving travel will be over.  As for $2.65, that might just be the low for the year.  Don't expect to see limbo kitty again until prices fall to within a dime of that price.

No comments:

Post a Comment