Key Takeaways:
- Drivers may want to wait until Sunday to fill up their tanks, as one analyst predicts that gas prices in most of Canada will fall by 10 to 11 cents.
- This isn’t the first time we’ve gone through it.
Gas analyst Dan McTeague, president of Canadians for Affordable Energy, predicts that gas prices will fall 11 cents per liter in Ontario and Quebec on Sunday. He also claims that gas prices will fall by 10 cents in Manitoba, Saskatchewan, Alberta, and British Columbia.
“That’s almost unprecedented for a one-day drop. I don’t think I’ve seen anything like that since 2009. “On Friday evening, McTeague spoke. Canadians have been reeling from record-breaking gas prices. According to Natural Resources Canada data, Canada’s average cost of gas has been between $1.47 and $1.50 per liter since early October.
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“Prices haven’t been this low in three months. And I believe it is very grateful right now for the majority of people, “McTeague explained. Given that provincial governments regulate prices in the country, no price increases are expected in the Atlantic provinces.
McTeague’s forecast comes as the global price of oil has dropped 13% to below US$70 per barrel, owing to concerns about the newly discovered Omicron variant of COVID-19, which helped a mass oil selloff. “It was an overreaction.
The selloff, in my opinion, went above and beyond what would normally be considered in a measured response, “McTeague explained. “The fundamentals remain now and in the future until someone can show that economies are shutting down as a result of this particular variant.”
Earlier this week, the United States, China, and other countries announced plans to release strategic oil reserves in response to the high oil price. On the other hand, McTeague claims that the recent price drop has nothing to do with this move.
“This drop was entirely COVID-related,” he explained. According to McTeague, the best time to fill up will be between Sunday and Tuesday. After that, gas prices may rise again as the Organization of Petroleum Exporting Countries delays plans to increase oil production.
Source CTV News
