Friday, December 12, 2014

The return of $2.50 gas

In Headlines for 12/10/14 give me a to do list, I "answered the implied question I asked in Retail gas prices drop as commodity prices bounce, 'Stay tuned to see if Tuesday's price moves signal a bottom or were just a coordinated dead cat bounce.'  They were a dead cat bounce, one that took the rest of the markets down with them."

Yesterday, those lower oil prices appeared at the pump, as all the neighborhood stations lowered their price for regular to $2.49.  Between the lower oil prices and the Detroit average from Gas Buddy, which fell from $2.62 two days ago to $2.58 yesterday, I was not surprised.  $2.49 was the next logical step.

Speaking of which, remember when Newt Gingrich campaigned on $2.50 gasoline?  President Obama dismissed it at the time, but he now can claim credit for achieving it, although it's really Saudi Arabia's actions that allowed it to happen.  Just the same, I won't let this opportunity to pull out the taunting macro go to waste.

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