For many Americans, the thought that gas prices are rising is bad enough. But for those who take things in stride, gasoline prices rose slower than we expected.
I forecasted last week that the U.S. national average could rise to $3.71 by today while prices in Canada could rise to 126.5c/L. It would appear that for the second straight week, I nailed the Canadian forecast while coming up a little short on the U.S. forecast. Prices in Canada are currently showing up as 126.4c/L while prices in the U.S. currently sit at $3.694 per gallon.
Sorry Canadians, I suppose your prices are rising faster than they are here in the states. So what's going on to cause prices to rise so much slower in the U.S.? It's hard for me to explain as I would have thought that with the decent gains in wholesale price, retail would rise sharply. However, it remains possible that retail prices never dropped as much as the corresponding drop in wholesale, meaning there's less ground to cover this time around.
For this week, my eyes (or at least one) will be focused on debt ceiling talks. There's a lot at stake in the talks- without an agreement soon, gasoline prices could fall (along with parts of the economy, the thinking goes), but if there is an agreement, it could bode well for economic improvement, driving up oil prices.
Having said all this, by next Monday I expect average prices in the U.S. to rise to $3.73 per gallon, while in Canada prices will rise to 127.2c/L. Most communities will see small (if any) increase, but areas of the Great Lakes may see a spike followed then by a drop in prices after any spike (as is normal in those areas). If there's any new news, we'll cover it on the
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