Thursday, August 31, 2006

Gasoline prices could keep falling

"The only place they have to go is down," says Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS). "We'll be closer to $2 than $3 come Thanksgiving."

Wholesale prices are falling faster than retail gasoline prices, meaning stations are making more money than when prices were $3. Wholesale prices Tuesday ranged from $1.77 to $1.79 a gallon, well below the $2-plus prices typical until recently.

Let me translate - my boss is an idiot. But so are most people. The day gasoline peaked. And I mean the very day. That moron thought he would be slick by ailinating potential clients with some moronic clause in our proposal that says our bid price is no good because we may raise it do to rising gas prices. Like I said most people are stupid. The world is full of idiots that moved the spread when they could have been capturing market share by shrinking the spread and taking the risks. Now we will have a whip-lash effect as the inflated spread is erased at a time when prices are falling.

Get ready for deflation.

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