The fall in world oil prices led to the Christmas miracle of lower gasoline prices in most parts of Canada, but an expert on fuel prices says that motorists should fill up now because prices are expected to be unstable in 2019.
Dan Makty, a senior oil and gas analyst at GasBuddy.com, says gas prices are at an almost 18-month low due to global oil prices that have fallen in the past two months due to fears of a recession, US and Chinese trade. fears that members of the OPEC oil cartel will not live to reduce production.
Another analyst, Michael Erwin of Kent Group Ltd., offers another explanation for price reductions.
He says that in the North American market there is an excess of gasoline, caused by lower-than-expected demand, and refineries are forced to produce excess gasoline to produce diesel fuel, a by-product in high demand.
“It’s not specific to the economy of Alberta, not specific to the Canadian economy, it’s really a reflection of how much gas is in the North American context now,” Erwin said.
Despite a brief rise in oil prices on Wednesday, average regular gasoline prices remain at the level of:
- 17 cents lower per liter than a year ago in Alberta and Ontario.
- 12 cents lower in Manitoba.
- Six cents lower in Quebec.
- 11 cents lower in Nova Scotia.
- Three cents lower in Newfoundland and Labrador.
- And on Prince Edward Island – seven cents lower.
McTeague says prices in B.S. compared to the same period last year, they rose by two to six cents per liter, but they would have been lower if it had not been for the impact of the interruptions in fuel imports from Washington due to the disconnection of the state's Olympic gas pipeline in mid-December.
Landmark for the United States. West Texas oil prices on Christmas Eve fell to $ 42.53, down 44 percent from $ 76.41 a barrel on October 3. They rose to $ 46.22 on Wednesday, but fell on Thursday.
McTeague says that “extreme volatility” in oil markets is expected to continue to damage gasoline prices in Canada in early 2019.
Erwin, meanwhile, believes that prices will remain low until demand rises in spring.