- 28 Oct
Increasing rack prices may mean retail fuel prices have hit bottom
According to Lundberg Survey, Inc., unbranded rack prices are starting to rebound, and that means we may very well start to see the average retail fuel price start to bounce back up as well. Read more at CSP.net here.
The retail price of unleaded has fallen $.1818 over the past two weeks to $3.0759. That’s $0.65 per gallon lower than the peak price of 2014 on May 2, and the lowest price in four years.
If we see rack prices drop again, it will be because global supply continues its downward pressure. As always, eyes are on OPEC to see if they continue their recent strategy of strong sales at current competitive but profitable prices, ignoring requests from Venezuela to cut production levels so prices can increase to a level closer to what Venezuela needs to be profitable. The next OPEC meeting is November 26.
My guess is that prices settle at current levels, with perhaps a slight increase, until the OPEC meeting.