Yesterday, the three stations down the block dropped their prices to $3.69 pulling the corner station down to $3.75. Today, the corner station joined them at $3.69. It turns out that the local stations were merely reflecting the price of Brent crude, which fell to $115.16 from its peak yesterday of $116.71, a drop of $1.45 and 1.26%. According to Econobrowser, that translates to a national average price at the pump of $3.72. The local price has merely adjusted to that level.That's where prices remained until today, when all four stations were selling regular at $3.65. As usual, gas shot up like a rocket but is coming down like a parachute.
Econobrowser shows that's happening at all levels from the nation to the metropolitan area. Since last Friday, when the national average was $3.62, the Michigan average was $3.74, and the Detroit average was $3.69, the prices have slid slowly down to $3.61 for the U.S., $3.66 for Michigan, and $3.65 for Detroit. All of those prices are below the expected national average for the current price of Brent Crude, $3.72 for gas refined from oil costing $115.26. Gas is fairly priced, given the inflated cost of oil from the Syrian fear premium.
Speaking of the Syrian fear premium, WNWO had David Seeger, President of Great Lakes Credit Union on to explain it and its effect in Gas prices flux during Syrian conflict.*
Money Monday's report reviews market speculation on oil availability.$8/tank is the average increase in price due to the fear premium. That's a useful statistic.
*Seeger should look familiar. He was featured in two videos I embedded in WNWO examines the shrinking middle class.