Posted in: Gas Prices,
by Patrick DeHaan on Nov 23, 2010 12:16 PM
That's right- Spot prices in the Chicago region have fallen under $2/gallon, the first time in months, and the first and only region in the country to see prices again breach the $2/gal mark.
Other areas such as the Gulf Coast and Plains/Upper Midwest are near $2, but still a few cents higher. Then regions such as West Coast and Northeast are much higher simply because of regional issues. The Northeast problems will work out in the next weeks as refiners come out of their maintenance while West Coast seemingly always trades higher than any other region.
Some areas of the Midwest have already hiked their prices- seems fitting that they'd like to make sure to make money with holiday traffic. Although prices rose in some areas, its important to note that where prices rose, they had fallen very quickly, dropping faster than the drops in wholesale price. This sometimes can happen in a longer downturn in prices because of competitive factors and regional factors. This is why prices haven't yet hiked in some of Speedway's area while rising in others.
Holiday travelers this Thanksgiving will see prices an average of 20-cents higher than last year. Much of the reason for the increase, although minor, is improvements in the economy which has increased demand for oil products slightly enough to cause the boost. We also have seen an extended refinery maintenance season, resulting in dropping supply amid the improvements in demand vs. a year ago.
Tomorrow we'll be having the DOE report highlights as usual, so I'm taking this moment to wish everyone in the U.S. a Happy Thanksgiving! There will be no blog posts on Friday, enjoy the day!