Posted in: Gas Prices,
by Patrick DeHaan on Jan 24, 2011 01:56 PM
Evaluating last week's prediction for this week, I said "I expect that by next Monday, we'll see that U.S. national average rise to $3.10/gallon, while prices in Canada will rise to 112.7c/L." Looking at our latest GasBuddy pricing data, we show the U.S. average at $3.098 per gallon while prices in Canada are coming in at 112.7c/L. Another good predict!
First thoughts in my head this week- could this be the first week in over a month that we see the national average move lower? Falling oil and gasoline futures today will make this week's prediction very hard. The market could certainly turn around and move higher come Tuesday and for the rest of the week, but with some questions emerging about the "economic recovery", there is some concern in my mind that rising food prices will choke off the recovery.
Oil prices have continued to move lower, as I noted. Presently, they sit under $88 per barrel, falling from $90 just weeks ago, certainly a welcome sign for motorists, but the drop in oil prices hasn't just made it to retail pumps.
With the drop in gasoline futures late last week and into today, I'm hopeful that concern grows and that wholesale prices continue to fall into next week. I'm going to buck the trend and say that I expect the national average to either remain unchanged or move lower.
I expect that by next Monday, we'll see that U.S. national average fall to $3.08/gallon, while prices in Canada will fall to 112.5c/L.