Last week, the story was Corner station in No Man's Land as oil retreats.
[G]as 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.This week, I didn't have to fill up either of our cars, but I had to run an errand for class in my old neighborhood, so I checked in. The corner station had dropped its price, but only five cents to $2.44 for regular. Meanwhile, the three stations down the street raised theirs to $2.39 for regular. According to GasBuddy, these prices are just a touch higher than usual for the neighborhood, as they were only three cents below the Detroit average of $2.42 instead of a dime lower. Prices may or may not drop, but they shouldn't increase over the next week unless oil moves up sharply.
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.
OilPrice.Net shows that might be happening. West Texas Intermediate (WTI) closed up today $1.70 to $49.21, while Brent jumped up $1.37 to $56.48. That's five dollars higher than last week but still nowhere near as high as they were this time last week. Once again, I'm going to be a good environmentalist and recycle.
As for the future, I'll repeat what I wrote lastInstead, a different prediction looks more likely, one I made in December: "Expect prices at the pump to remain below $3.00 until at least March, if not later." That one is almost a lock.
monthweek: "As long as oil stays at these levels, Detroit and Michigan averages over $2.50 by the end of the month seem unlikely."