Gas prices spiked this week but according to Don Good from the Good Oil Company, we should be seeing lower prices for a gallon of gasoline soon.
Good said the recent spike has to do with the continuation of the fuel turnaround.
“Every time this time of the year rolls around they deplete the tanks to meet the new standards and that always creates – I’ll call it a ‘pricey opportunity’ for the speculators to buy product and then sell it at an increased cost so we always have some upward pressure this time when they go into turnaround, commented Good.”
In the long-term outlook, Good believes things are looking good.
“We have hit an all-time record for the amount of crude oil in storage in the United States. It’s a combination of the fracking in the shale plays and then we had some import spikes so that feedstock will be into the terminals before long. When there’s a lot of crude built like this there’s a lot of pressure to move it through the system and get it out of storage and through the refineries which means a lot of times they’ll cut pricing to move that. We should see lower costs around the corner.”
In some more positive news, Good doesn’t think that prices will be over $4.00 a gallon for unleaded gasoline.
“To breach that four dollar mark even when the prices are going up, there just a lot of resistance. Nobody wants to cross that barrier or especially to be the first one to do it. I do honestly think that we should see some retraction here before long and hopefully it means we’ll see prices in at least the low three dollar range for gasoline for the summer.”
He said that we’ve probably reached the high point of pricing right now.