The oil price closed at $91.50 a barrel in Wednesday’s market. That prompted a call to Don Good from the Good Oil Company in Winamac.
“They took a little spike over the unrest in Egypt and the Suez Canal comes through there and that’s a big concern as far as shipping oil out of the Gulf,” reported Don Good. “There’s also a major pipeline that runs through Egypt called the Suez Pipeline and it’s a concern there that it may be impacted if the violence goes that way. I think a bigger concern there is it could destabilize the Middle East, particularly Saudi Arabia. Their fear is that if it spreads there, that’s where we’ll really have a problem.”
We asked how the unrest in Egypt is going to affect prices.
“Right now it’s been kind of a muted response because of the fact that everybody realizes that there is still a glut of product on the market,” he replied. “We’re still in very good shape with inventories and demand is still soft. While it’s picking up in India and China, in this country it’s still very soft. I don’t think we’ll see a huge spike unless something drastic happens like if we see this spread to Saudi Arabia and other countries.”
