Well it appears pump prices have bottomed out. I saw the first rise in about 3 months a few days back. Only by a penny per litre, but it shows that things have bottomed out. It takes them 3 weeks to reduce prices when oil falls, but when it rises they bump up prices immediately.
It's simple. When prices fall, they keep selling at a higher price for a couple of weeks because that is how long their own storage, of course bought at a higher price, lasts. This way they will never sell for a loss. When prices bounce up, they pull the price up at the same time so they can conveniently blame it on the rising oil price. Smart business, I'd do the same in their shoes.
Yeah, I think most predict it will bounce around between $45-$55 for the time being. Pump prices should tick up a bit over the coming months, always happens in the spring.
At least I've only seen a single price rise, despite a steady rise over the course of a week. It's touching $60 now, so I think things might start to pick up pretty soon. It's an unusually slow rise at the pump though.
Looks like oil hit it's low and from now on, prices will steadily rise. Some analysts have it that the price might double by the end of the year. Means we'll be paying more for gas than we did when the prices began to fall. http://finance.yahoo.com/news/gas-prices-may-double-years-140000369.html "Enjoying those prices at the pump? You might not want to get used to them. A former top oil executive says the price of gas at the pump could double by the end of the year."
Pump prices always go up during the Spring as it's predicted people will begin to travel more after the winter months. But Oil was never going to continue to fall at the rate it was. In California, it's gone up about $.40 the past 2 weeks or so. Prices won't bother people if they continue to hover in this range, which is what it is predicted to be over the next few months.
I wouldn't trust anyone's guesstimates about what the price will be and when. Also a former oil executive is very likely to hold a huge position of oil related shares (gained as bonuses while working) so naturally they are all saying the price will double or triple. I do agree that the price will be slowly heading up with a lot of volatility on the way but I doubt we will be seeing double. (which would be about $120 for the brent)
We bottomed out around $1.89 per gallon, but we seem to be holding steady at $2.07 a gallon for about the past week and a half. I am hoping they aren't going to get back as high as they were before though.
I have not been looking too much on the gas prices lately so I am not sure where they are right now. I think around my area for ARCO has been around $3.12 for gas prices.
