Monday, December 17, 2012

Gas price rollercoaster drops to 2012 low--so far

Prices have fallen even more since I announced a 9-month low.  On Thursday, I saw regular selling for $3.19 in Hazel Park.  By Friday, the corner station had dropped their price to $3.19 as well, as had the three stations a few blocks away.  As far as I know, gas is still selling for that much.

According to the Gas Buddy graph over at Econobrowser, gas in Detroit hasn't been this cheap since last year at this time, when the average for Detroit fell to $3.16.  That means the current price is the low for the year so far.

It's not just Detroit, it's nationwide as the headline from the Detroit Free Press proclaims "Gas prices to hit low for the year!"  Since it's an Associated Press article, I'll refrain from quoting it.  However, it does predict that the national average will drop below the $3.28 from the beginning of the year by Monday.  Econobrowser shows that's already the case, with the nationwide average at $3.25 and Detroit's at $3.23.

Before I post Professor Farnsworth, I'll ask again, is this price high or low given the cost of Brent?  The answer is that it's low.  Econobrowser is showing a price of $108.13 for a barrel of Brent, which should result in a price of $3.54.  I wonder what the projected price is if I used West Texas Intermediate, which is $86.10 according to Econobrowser?  It's $2.99.  It looks like gasoline is starting to track WTI again.  Even if it's not, it's still good news.

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