Friday, July 5, 2013

Prices rise after July 4th but still below last year

I was not optimistic about gas prices remaining low in Gas prices ended up falling before 4th of July
Yesterday morning, the corner station was still selling gas for $3.59, but the three stations down the street were charging $3.48.  By yesterday evening, the corner station had dropped its price all the way to $3.38, only a penny above the $3.37 where it started the month and well below where they were July 4th of last year.  I'd post Professor Farnsworth, except that the price of oil is going back up at the same time gas stations are lowering their prices....

I didn't check today if prices had risen in response.  When they do, I'll return with an update.
WCPO explained the situation in Oil prices soar due to unrest in Egypt.

The price of $101 WCPO showed was for WTI at the close of business on Friday.  Reuters showed the the price kept rising today in Oil jumps $2 on Egypt, U.S. data, biggest weekly gain in a year.
U.S. crude oil prices extended their string of 14-month highs. Front-month U.S. crude oil futures settled $1.98 per barrel higher, or 1.96 percent, at $103.22, after touching a high of $103.32. Trading volume was thin due to the Independence Day holiday on July 4.

U.S. oil gained 6.7 percent for the week, the largest weekly percentage gain since October 2011.

Brent crude oil for August delivery traded at a three-month high and ended $2.18 per barrel higher, or up 2.07 percent, at $107.72 after hitting a high of $107.88.
Gas prices tend to track Brent, not WTI.  Based on the Brent price, the calculator at Econobrowser gives a price for regular of $3.53.  Are local prices in that range?  Yes.  The local station raised its price today to $3.48, exactly what the three stations down the street were selling it for Wednesday as well.  Not only is it a fair price based on that of Brent crude, but it's also right at the national average and below the prices being charged last year at this time.
I was pretty sure that it wouldn't remain that high, as the three stations a couple of blocks away only went up a dime to $3.49. Sure enough, the price fell to $3.54 by that evening and $3.49 a couple of days later.
Regular is still a penny lower than on this date last year.  Again, I'd post Professor Farnsworth, except I'm sure the price will continue to go up for the next week or so.  Maybe I should fill up my car.

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