Tuesday, October 22, 2013

That didn't take long

Last night, I concluded The corner station retreats almost a full step by writing "If anything, I expect prices to continue to decrease."  They did.

This morning, all the neighborhood stations were selling regular at $3.35, so all of the increase of the past week has disappeared.  That was enough to get me to buy gas for my car, but not enough to get me to fill up.  I only bought six gallons, just over half a tank.  I still expect the price to drop more in the next week or two.

The local, regional, and national trends all support this prediction.  The Gasbuddy widget over at Econobrowser shows that the national average price is continuing to sink, sliding from $3.36 to $3.35.  The Detroit average is converging upon the national average, declining from $3.39 to $3.37, while Michigan's went from $3.42 to $3.40 overnight.

As for how long this trend will continue, the crude oil indices are giving contradictory signals.  While Brent Crude has been generally going down, it went up today to close at $109.97.  On the other hand, WTI is at a three-month low of $99.60.  Stay tuned.

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