Posted in: Gas Prices,
by Patrick DeHaan on Nov 9, 2010 10:39 AM
It's Tuesday (yes I'm one day late) and time to evaluate last week's prediction for the Weekly Gasoline Price Outlook! Last week I said prices would drop as the week started, and they did- but only slightly from $2.805 to $2.803. I also said prices would rise mid/late week, which occurred as predicted. I also said Midwestern states (MI, OH, IN, MN, KY, a few others) could rise 15-25 cents per gallon, and rise they did! Some areas hit $3+/gallon. I closed out my predict saying prices would average $2.84 in the U.S. and 104.5c/L in Canada. The actual was $2.85 and 103.8c/L, we'll call very close again.
On to this week! A lot going on, oil prices have held above $85 since last week, and the national average continues to climb. I believe that many areas will see prices rise 2-7 cents per gallon, while in the Midwest the areas that saw huge increases will see falling gas prices for most of the week. Those Midwest areas will take 7-10 days to come back in line with the national average, but eventually it'll happen.
Meanwhile prices will rise in a majority of other areas, but relatively slowly, perhaps a few pennies per day. This week's Department of Energy report, issued tomorrow, will be a major factor in how long prices remain high. If the report is good, prices will slowly moderate, if even the highlights of the report are bad, expect oil prices to get even closer to the $90 mark.
My prediction for this week for gasoline prices: MI, OH, IN, WI, IL, KY will see falling prices (although slowly). Most other states will see prices gradually lift. By next Monday the national average will be $2.90 while prices in Canada will average 104.8c/L. The reason that Canadian prices aren't expected to move much is because the strength in the Canadian dollar. Should the Canadian currency weaken, expect higher prices.