The gas prices are dropping and Don Good from the Good Oil Company in Winamac gives us his analysis of the current trend.
“Part of it is that this time of year, we go into what they call the turn around on the terminals which is an environmental requirement,” explained Good. “All the refineries pull their inventory down to put the summer-grade gas in and that always creates some glitches, but it also creates some opportunities for the speculators. I think there has been some economic news that has come out that kind of spooked them a little bit. There’s actually been a drop in demand so that spooks the speculators a little bit and when they leave the market, prices are going to come down now. This is the most volatile time I’ve ever seen. In this industry, we’ve seen where one night it goes up twenty cents and the next night it comes down fifteen cents. Usually, it takes some type of disaster to create that kind of volatility, but right now it’s just mainly the speculators jumping in.”
Good says that prices will continue to go down throughout the summer
“I think we’re going to see some volatility with some ups and downs, but I do think that we’re going to see somewhat of a downward trend – that’s what everybody has been saying. There’s a guy named Tom Kloza who’s one of the main oil economists and he’s predicting, by mid-summer, that we’ll see $3.25 to $3.50 a gallon. I hope he’s right!”
We are already seeing gas prices drop below $4.00 a gallon.
“We’ll get under that $4.00 mark really quick. Unless something reverses, it could be this week or the first part of next week that we’ll get under $4.00 again. I do think we’ll see some downward trends.”