The price of a gallon of unleaded gasoline has been dropping.
Don Good from the Good Oil Company in Winamac says the prices will continue to drop.
“For the foreseeable near future, the trend is to continue down,” said Good. “We’re probably going to bottom out not too far from here. There are a lot of places that are starting to get under three dollars. That’s kind of under cost for some of them, but they’re trying to beat that three dollar mark. For the long term, we should be under three dollars and unless there’s a world event that changes that we’ll probably stay in that range for a while.”
Prices for a gallon of unleaded gasoline have taken a plunge and Don Good from the Good Oil Company in Winamac said the trend could continue.
“It looks like we could even see some really good drops coming up here through August,” said Good. “One of the top analysts suggested we could see a 20 percent drop in prices if everything lines up as it is. It came a little later than anticipated. We thought it would come a little earlier in the season, but it looks like it’s going to be pretty significant. That’s good news.” Continue reading →
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.”
Starke County Highway Superintendent Rik Ritzler has some flexibility to purchase fuel from local vendors if the price is right.
Ken Wagner from the Starke County Co-Op pointedly asked the county commissioners what it will take for him to successfully bid to offer the county fuel. He notes that his last bid was within 1/10th of a cent of Winamac-based Good Oil’s cost, yet the county bought the fuel from them. That came out to a total savings of $9.
If you’ve filled up your gas tank lately, you might have noticed it was a bit less painful than usual. With the average price of gas in Indiana down to $3.40, now might seem like the best time to stock up on gas – but Don Good of the Good Oil Company says prices could very well continue to decrease.
Good explained that prices have lately been driven more by the world and US economies than by supply and demand, which is why gas prices have been dropping this summer rather than rising alongside the temperature. He says that for the last six months, supply has been very good, and when looking at the world forecast for economy and fuel demand, the demand for fuel has been decreased.
The talk about gasoline prices and what’s driving the market has overshadowed the fact that huge oil finds have been discovered in the United States. According to Don Good, of Good Oil in Winamac, we are able to get to the product with new technology.
Don talked to us recently about the Bakken Shale Oil Field which stretches from Canada into Montana and North Dakota. This field could hold over four billion barrels of oil reserves, and the Arctic Natural Wildlife Refuge in Alaska could potentially hold up to 10 billion barrels of oil.
Don Good from the Good Oil Company in Winamac has said this week that you can forget what you may have read about the laws of supply and demand when it comes to gasoline prices. The supply of oil and gasoline is higher today than it was three years ago when a gallon of gasoline sold for $1.90.
There is a culprit – Wall Street speculators. A decade ago they controlled 30% of the oil futures market. Today they control 80%.
As gasoline prices go up dramatically at the pump, everyone is considering how to absorb the extra cost of driving.
With gasoline consumption down to the 1989 level, it looks like gasoline prices should be going down. According to Don Good from the Good Oil Company in Winamac, the speculators are holding the prices in the higher price range. There’s something else coming soon that will impact prices, too.
Good news for the beginning of 2012—gas prices aren’t expected to spike come the New Year. Don Good of Good Oil in Winamac said that current oil prices are, as of now, driven heavily by the world economy, and with the possibility of an economic slowdown in China, Good expects prices to stabilize or even come down early 2012.
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.”
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.”
The second greatest jump in regular gasoline at the pump has occurred the last two weeks. The jump has been 33 cents a gallon.
“The oil companies are not the culprit, they are the beneficiary,” said Don Good of the Good Oil company in Winamac. “They benefit from all this and I don’t think that you’ll find the oil executives sitting around the table crying over $100, $130 crude because they will just make a lot of money off of it. They aren’t the ones driving that market, but they’re more than happy to ride along.”
Everyone is talking about gasoline prices. We’re seeing oil prices rise and we’re hearing about $150.00 for a barrel of oil when we don’t really see signs of a robust recovery. Is there a reason behind these increases?
Don Good of the Good Oil Company in Winamac explains the prices at the pump.
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.”
Gas prices spiked ten cents this week when prices hit $3.19 a gallon.
“We’re kind of seeing a little bit of a combination of things when it comes to crude oil prices,” said Don Good of the Good Oil Company in Winamac. “It’s combination of the weak dollar, we’ve kind of talked about that crude oil is valued in dollars, so when we do something in our economy that makes the dollar weaker, like the $900 billion tax relief plan that added to the deficit, that made the dollar fall. Since the dollar is the currency that they value crude in around the world, it makes crude oil more expensive for us and less expensive for other countries. India’s and China’s economies have really picked up. I think they’re running at about a six or eight percent increase compared to where we are struggling. As a matter of fact, China just passed us as being the largest consumer of petroleum in the world. They’re consumption of oil is going up while ours is pretty stagnant. Right now the markets are focusing on their use than ours.”