When I said in 2001 that I would never see gasoline under $1 again in my lifetime, I had a pretty good feeling I was going to be right. That's until a friend recently tipped me off that an Amoco in Chicagoland was basically giving away gasoline, selling for a measly $0.001 per gallon.
While I still may be technically correct saying that I would never see prices under $1, I can't believe I've heard of a price for less than 1% of that amount. While I'm unaware of the exact situation surrounding the cheap gasoline, I was told that after this picture was taken, the station closed.
I hope that BP's situation in the Gulf had nothing to do with this station owner losing his shirt, his house, and his car on selling gasoline for such a low price (did he intend to sell for nothing?), but no matter what, I'm sure he lost a handful, considering that even the wholesale cost of gasoline in the Chicago area stands at nearly $2.20 for premium.
On to the weekly outlook, something I haven't posted in months. There's no great news, but there's no immediate bad news, either. Gasoline prices will remain stable (my interpretation of the word stable is within 5 cents of where prices are today). Although I expect things to be quiet, hurricane season is upon us, and things can change rapidly. Since we already talked about the Windy City (Chicago), I'll just say things can change as fast as they used to in the Windy City (referring to politics that changed seemingly each time the wind changed directions).
The U.S. average will remain between $2.70-$2.75 per gallon while prices in Canada will remain between 100.5c/L-102c/L. There is still no clear direction for the U.S. economy, and until one develops, oil and gasoline prices will continue to stay in limbo, waiting for news on a more defined path.