I expressed my astonishment in the opening of PBS NewsHour on lower oil prices.
Gas prices have continued to fall since yesterday's WOOD-TV on lower gas prices. The neighborhood stations blew right through the $2.35 and $2.32 price levels I expected to $2.29, lower than I would have forecast for this week. I'd be tempted to call a low for the year, but there is still another week that prices could fall before they historically begin to rise again.I was wise not to call a bottom, as prices kept falling since then. Thursday, the three stations down the street lowered their price for regular to $2.25, while the corner station remained at $2.29. I expected the corner station would match them. Instead, it undercut them, dropping its price all the way down to $2.17. In response, the three stations down the street lowered their prices to $2.22. That's about what should be expected from Gas Buddy, as that is a dime below the Detroit average of $2.32 on Thursday. However, the corner station seems to have anticipated a further price drop that arrived Friday, when the Detroit average fell to $2.29. A dozen cents lower at $2.17 doesn't seem that out of line.
Both WXYZ and WOOD-TV have noticed the latest price drop. First, WXYZ reports, a few days later than WOOD-TV, that Gas prices drop to under $2 per gallon in Michigan.
That station is only a few miles away and might just pull down prices of stations nearby, so I'm still not calling the bottom yet.
Follow over the jump for WOOD-TV's reporting on low gas and oil prices.
Speaking of low gas prices and local competition, WOOD-TV asked Why do gas prices vary by area?
It's about whether the gas station is trying to make money at the pump or in its convenience store.Not a bad answer. Also note the prediction that prices will stay about where they are now for the next couple of months.
As for what the producers think, WOOD-TV reported on a Local oil man's mixed emotions over low pump prices.
Ken Langerak is conflicted whenever he pulls up to the gasoline pump, no matter the price.One of the dynamics I described in PBS NewsHour on lower oil prices in which low prices start shutting off production is already starting here in Michigan.