Before I relate my observations, I'm letting WOOD-TV set the stage in Summer gas spike: Gas prices up 30 cents or more.
Gas prices have gone up at least 30 cents around West Michigan over the past few days-- in some locations, it went up as much as 50 cents.The same price spike hit Metro Detroit yesterday. On Wednesday, the station I pass on my way to work was selling regular for $2.88, just as I had reported in Gas up in some neighborhoods as OPEC decides to keep pumping. Yesterday, it had raised its price to $2.98. When I drove to the old neighborhood for what might be the last time until September, the corner station, which had been at $2.77, was selling regular for $2.99, while the two open stations down the street had raised their prices from $2.69 to $2.76.
Maybe I should have bought gas yesterday, as Gas Buddy shows that the Detroit average has risen from $2.76 to $2.93 over the past week, making the two stations down the street underpriced relative to the market. They would be right on target for the U.S. average of $2.80. Recent commodity prices support this spike weakly, as Oil-Price.Net lists yesterday's closing prices for WTI at $60.77, Brent at $65.11, and RBOB at $2.13. All are up from last week, when WTI sold for $59.13, Brent closed at $63.31, and RBOB was at $2.03. However, all of these futures closed down today with WTI at $59.96, Brent at $63.87, and RBOB at $2.12. Oil is near where it was last week and still lower than it was a month ago, but the wholesale price of gasoline is up a dime. So long as RBOB is up, then the price at the pump will be, too.