Gas expert: Low prices expected to last in Ottawa until new year
Posted Nov 27, 2018 09:07:00 PM.
This article is more than 5 years old.
According to Petroleum Analyst for Gasbuddy.com, a recent slump in the price for fuel is mainly caused by the Global Crude Oil Market trading lower at $51 a barrel.
“We've seen oil drop dramatically, 76 to 50, 51, 52,” said Dan McTeague.
“Analysts, and certainly traders, were expecting $100 oil after or near November 4,” added McTeague. “This is because the Trump administration made it very clear to the world, they were taking a no nonsense approach to Iran and they were going to seal off all of its exports including oil.”
Listen to the conversation with Petroleum Analyst for Gasbuddy.com Dan McTeague on 1310 NEWS' The Rick Gibbons Show:
To prepare for this, the analyst said the Organization of the Petroleum Exporting Countries (OPEC) was stockpiling for a potential loss in Iran, which didn't end up happening, creating a supply of oil that outweighed the demand.
It's possible we could see a rise in prices by December 6, when OPEC tries to cutback on the over production. However, McTeague believes we won't see an increase until the new year.
“It's a bit of a Christmas gift, but come January 1, what Ontario has given in terms of scrap, and cap and trade, will be taken away by Ottawa, reimposing as Carbon Tax,” said McTeague
