This post originally appeared on Orphan Road.
It seems pretty clear to me the delay is being driven by the rather sudden drop in fuel prices we’ve seen over the last couple of months. The average cost for a gallon of gas on the West Coast peaked at $4.28 in July, according to the DOE, and is now sitting at about $3.37. Oil futures have dropped in half from their high this summer, on fear of a slowing economy.
It seems pretty clear that oil prices will rise again. Demand is still bumping up against available supply, and the market panic has probably panicked a bit more than is rational. Now would probably be a good time for Metro to lock in “cheap” gas at current prices, or face an even worse shortage down the road.