Gas Prices Expected To Go Lower

By Corey Fischer

Nov 19, 2018 | 9:50 AM

Gas prices are expected to continue to slide lower in BC and other parts of Canada.

Prices dropped an average of 2 cents a litre last week in BC, and another two cent drop is what the website Gasbuddy.com is expecting for this week as well.

Analyst Dan McTeague says much of the decrease is due to a decline in oil prices.

“As pump prices now stand 5.6 cents a litre lower than on this same day last year, much of the credit can be given to the unexpected and likely temporary decline in oil prices, which could be subject to an upturn once OPEC and Russia agree to production curbs beginning in December,” said Dan McTeague, senior petroleum analyst at GasBuddy. ”

He says the average gas price in Canada is $1.13, about 5 cents lower than a year ago, while in BC, the average is $1.33.

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The price in Vernon today is $1.29.9 at most stations.

Elsewhere around BC, Abbotsford is at $1.22.7, Vancouver- $1.35.1, and Victoria- $1.36.7

“The free-fall on energy markets accelerated in the early half of this past week with WTI oil dropping a record $4.24 a barrel on Tuesday alone while Canadian oil blends, notably WCS oil trading as low as $14 a barrel helped force down pump prices across Canada by 2.1 cents a litre to $1.13, their lowest since October 2017. As pump prices now stand 5.6 cents a litre lower than on this same day last year, much of the credit can be given to the unexpected and likely temporary decline in oil prices, which could be subject to an upturn once OPEC and Russia agree to production curbs beginning in December,” says McTeague, senior petroleum analyst at GasBuddy.

McTeague says despite a call by the U.S. Administration to encourage OPEC nations to maintain or increase oil production, a combination of cuts and expiration of US waivers from sanctions on Iran could prove a major catalyst for oil’s rebound.

“However, this isn’t likely to take place for a few weeks and in the meantime, the weakness in Canadian oil prices are generating weakness in the Loonie, which in turn are supporting existing pump prices.”

by Corey Fischer