Wednesday, September 9, 2015

Gas below $2 near Grand Rapids

Looks like I'm not done with low and still falling gas prices.  First, I promised Limbo Kitty next time.  It's the next time, so Limbo Kitty returns.  Next, I predicted gas below $2.00 between Halloween and Thanksgiving.  That's here in metro Detroit.  In the outlying towns around Grand Rapids, that's already happened, as WOOD-TV reported Monday in Gas below $2/gallon in some cities Monday.

Experts say Monday’s gas prices were the lowest West Michigan has seen on Labor Day in almost a decade.
I always glad to see Patrick DeHaan interviewed; he is probably my favorite expert on gas prices.  Speaking of GasBuddy, it's showing the stations in my former neighborhood all selling regular for $2.19.  I said they'd drop their prices, and they did.  Right now, they're exactly a dime below the Detroit average of $2.29, which means they are currently competitively and appropriately priced.  Even so, prices should continue to drop, as the cheapest station in metro Detroit is selling regular for $1.95.  The average might dip below $2.00 before Halloween, but I'm not making that prediction yet.

The oil markets may push that along, though.  WTI ended trading last Thursday at $46.75 with Brent at $50.68.  Oil-Price.Net shows that both have declined since, with WTI closing Tuesday at $45.94 and Brent at $49.52.  Not only is oil down, but so is RBOB, which fell more than a penny to close at $1.40.  That will support gas below $2.00 in the lower overhead markets.  Whether Detroit is one of them remains to be seen.  Stay tuned.

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