Have you been pleased that gasoline prices have dipped recently? Do you think it’s because consumption is down around the country? Don Good, at Good Oil in Winamac, says gasoline prices have been disconnected from supply and demand for a long time.
“Everything is driven off the markets,” said Good. “I think when China started coming out and saying that they were intentionally slowing down their economy, and then rumblings started about the Greek debt crisis and the European debt crisis. The stock market started to fall and gas prices went right with it.”
If it was strictly “supply and demand” the prices should have dropped dramatically.
“Nationwide we’re down about six percent from last year and last year was down about seven percent. Since this thing started, we’re down 12 to 15 percent, which is huge if you really look at the scope of it. We used to be able to sit here and watch inventories coming out and we’d judge our movements by where that was going. We don’t even worry about that anymore because it doesn’t mean anything.”
Good said we can expect prices to bounce around.
“I think we’re approaching the bottom of this dip if we’re not there and it may bounce up, but I don’t think it’s going to bounce back up to the four dollar range. I think it’ll bounce back up 20-30 cents and then it’s going to come down some and back up some. The volatility of the stock market is driving the prices.”