Last week, the story was gas prices inch up in my old neighborhood as oil falls.
Yesterday, the corner station returned to $2.39 for regular and was selling mid-grade for $2.59. Looks like that 20 cent premium is here to stay. In contrast, the three stations down the corner only raised their prices to $2.19 with mid-grade at $2.29. I filled up Dez as soon as I saw that.This week, the news is that gas prices fell as oil hit multi-year lows, at least in my old neighborhood. Yesterday, the three stations down the street from the corner station in my old neighborhood lowered their price from $2.19 to $2.17. Meanwhile, the corner station is camped out in No Man's Land by selling regular at $2.49. They raised their price while their competition lowered theirs. This will probably not end well for them, as they are 21 cents above the Detroit average of $2.28 at GasBuddy. In contrast, their competition is a dime lower, exactly where they usually are. That's why I filled up Ruby at one of them.
Yesterday, as OilPrice.Net shows, WTI closed at $48.29 while Brent ended trading at $56.39. Both are close to their lows for the past month and in trading bands $5 below where they were last report.
Meanwhile, OilPrice.Net lists yesterday's close for WTI at $43.46, a six-year low for the commodity. That makes the price rise since January look like a dead-cat bounce. Brent also fell to $53.43, not as low as it was in January, but $10 off of where it was a month ago. Not a dead-cat bounce, but close.
As for the future, I'll repeat what I wrote last month: "As long as oil stays at these levels, Detroit and Michigan averages over $2.50 by the end of the month seem unlikely."