A leading Canadian analyst is predicting gas prices will go even lower.
Dan McTeague from GasBuddy.com is predicting four cent a litre declines this week in central BC, and most of Western Canada.
He says it’s due to what he calls “the jaw dropping free-fall on energy markets,” with oil prices plunging more than 6 dollars a barrel last week.
“Some Canadian oil blends traded as low as $12 per barrel. The total effect may have been worrisome for petroleum producers, but for refiners and drivers alike, no one seemed to be complaining as average pump prices across Canada fell by 3.5 cents a litre to an average of 109.6 cents, their lowest since early October 2017,’ says McTeague in his weekly newsletter.
Vernon’s gas prices are down a couple cents today $1.24.9 at most outlets, same as Kelowna.
“As pump prices now stand 7.1 cents a litre lower than on this same day last year, much of the credit can be given to the unexpected, but volatile decline in oil prices, which could be subject to an upturn once OPEC and Russia agree to production curbs following the December 6 meeting of the cartel’s members,” says McTeague, senior petroleum analyst at GasBuddy. “The intrigue surrounding the Trump Administration’s reluctance to admonish Saudi Arabia for its role in the murder of Washington Post journalist Jamal Khashoggi is being interpreted as a sign that Saudi Arabia won’t press for substantial cuts in production of oil, which it claims has already reached peak levels. Consequently, traders are putting little stock in meaningful cuts in output at OPEC’s next gathering in two weeks.”