You might have noticed gas prices starting to pick up a few cents here and there. That’s likely to continue into the summer driving season.
“Consumers have changed their driving habits, and demand has shot through the roof,” said Doug Werling of Bower Trading, speaking on AgDay with Clinton Griffiths.
Traditionally, gas prices increase in summertime, due to seasonal demand, and while that will likely happen this year, there’s no need to panic, according to Werling,
“[The increasing demand] doesn’t mean gas is going up to $3 on the board or anything like that, but it does suggest that 95-cent low on the futures price isn’t going to come back anytime soon,” he said.
Fortunately, many farmers locked in fuel prices in the first quarter of the year when energy costs were at their lowest. “If you’d taken advantage of that earlier this year and locked in gas, you’re sitting pretty good,” Werling said.
The oil market outlook indicates the gas market should remain steady. “There’s plenty of oil to go around for a while without some type of event that caps supply and makes it go lower,” Werling explained. “The dollar could change things going forward because oil is priced in dollars, but at this point in time, production of oil is pretty solid and supply and demand is OK.”
Watch the segment below: