Tuesday, July 15, 2014

Gas prices finally lower year-over-year

I was able to resist the temptation I mentioned in Another prediction comes true early.
Gas is no longer more expensive year-over-year, as it now matches the the $3.69 all of them were selling gas for exactly a year ago today.  In fact, so long as the stations don't raise their prices, they'll be a dime lower than the $3.79 gas was selling for a year ago this coming Saturday.  That's when I'll be tempted to break out Professor Farnsworth, although I should hold out for the next price drop.
The next price drop arrived yesterday, when two of the three stations down the street lowered their price to $3.65.  Prices haven't been this low since the Thursday before Memorial Day.  They're also 14 cents below where they were this time last year.  Yes, time for Professor Farnsworth, even if the corner station and the third station down the street are still at $3.79.  By the end of the week, they'll join the rest.

As for what will happen next, I'm not sure.  On the one hand, GasBuddy shows the national average continuing to go down to $3.60 from $3.63 and the Detroit average has continued falling past $3.77 to $3.72.  Based on that, prices should be stable to down by next week.  On the other hand, Reuters reported that crude oil is bouncing off a bottom.
Oil prices ended slightly higher on Monday as traders weighed renewed violence in Libya against broader signs of a global market well-supplied with crude.

Brent crude gained 32 cents to settle at $106.98 A barrel. It had dropped to $106.21 earlier in the session, the lowest intraday price since April.
WTI is also flattening out, as another Reuters article reported "U.S. crude futures rose 8 cents to settle at $100.91 a barrel."  For the tie-breaker, I'm going to RBOB (wholesale gasoline stock).  Take it away Wall Street Journal!
Front-month August reformulated gasoline blendstock, or RBOB, rose 1.66 cents, or 0.57%, to $2.9251 a gallon. August diesel settled up 1.20 cents, or 0.42%, to $2.8729 a gallon.
I'll vote for steady prices not dropping ones next week as long as these conditions prevail.

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