Gas prices plummeted in parts of the country during Canada's long weekend, but pump bailouts may not last that long, analysts say. According to
GasWizard.ca, prices in the Greater Toronto Area and Ottawa fell 11 cents per liter on Friday, again 6 cents per liter on Saturday to 187.9 cents per liter. Calm down. ..
Montreal's gas prices also fell 6 cents on Saturday after falling 4 cents on Friday. In Vancouver, prices fell 7 cents on Friday and another 7 cents on Saturday. Winnipeg and Halifax also fell three cents on Canada Day, but prices in these regions were stable on Saturday.
The US Federal Reserve's rate hike caused crude oil prices to fall in June, raising concerns about a recession.
"I think the panic market is probably the best way to explain it. I'm a little keen on concerns about recession and disruption of demand," said Gas Wizard founder and affordable. Dan McTeague, Canadian President of Energy, told CTV News. .Ca in a phone interview on Saturday.
In Ontario, where gas prices fell most sharply, the slump in oil prices was consistent with the state government's temporary gas tax cut of 5.7 cents per liter. .. Other states, such as Alberta, Newfoundland and Labrador, have already reduced thegasoline tax by.
Despite tax cuts, En-Pro International's chief oil analyst Roger McKnight said Canada's gas prices are happening in the United States, where there is a big discrepancy between supply and demand. I say that I almost obey.
"Canada prices are not made in Canada. Whatever happens to US wholesale prices, they actually follow. In that respect, oil inventories are down 13%. . Average for five years. Gasoline is down 8 and diesel is down 20 ", he told CTV NewsChannel on Saturday.
OPEC promised to increase production, but the group failed to meet its goals as Libya and Nigeria delayed production in June, Reuters reported. Earlier this week, French President Emmanuel Macron told US President Joe Biden that Saudi Arabia and the United Arab Emirates. It was already produced with production capacity.
"I think the reality is that we weren't as good as it was a few months ago, which means fuel supply is still difficult and demand isn't sluggish," McTigg said. Told.
Faced with pressure from voters prior to the US midterm elections this fall, Biden urges domestic oil companies to increase productionand pressuresGulf countries to increase supply. I'm wearing it. The White House is also considering expanding offshore oil drilling in the Gulf of Mexico.
"[Biden's] is scrambling to find a safe or stable supply of crude oil. This is not a big deal," McKnight said.
McKnight says gas prices are expected to rise by 5 cents by Monday and it is unclear in which direction prices will move this summer.
"It's very difficult to say," McKnight said. "There are 16 factors in the price of 1 liter of gasoline, and if any of them changes, the big picture will change."
However, McTeague says that gas prices will only be in the next stage from here. It is expected to rise. Two months, saying that the difference between supply and demand will not be resolved immediately.
"What I saw here last week was a bit of a fake ... it didn't reflect the fundamentals," he said. "It's clear that prices will rise significantly from July to August."
Using files from Reuters.