Gas price watchers are confident that motorists in the capital region could see relief at the pumps heading into the weekend, as analysts predict a further slide in local gasoline prices.
Price Drop Expected
Roger McKnight, chief petroleum analyst at En-Pro International, issued an alert indicating that prices are expected to drop by eight cents per litre on Friday, bringing the average pump price to between 183.9 and 184.9 cents per litre in the region. This decline extends the price volatility seen this year, driven by supply concerns, fluctuating wholesale costs, and shifts in refining output.
McKnight attributed the latest slide to commodity traders reacting to headlines. He noted that former President Trump's statement that the Hormuz conflict would be over soon lowered the war premium built into crude oil costs. However, he cautioned, "Will the rumour hold water and keep prices down? It's another continuation of the guessing game."
Further Decrease Anticipated
Dan McTeague, president of Canadians for Affordable Energy, also weighed in, predicting a nine-cent-per-litre drop at Ottawa-area stations on Friday. In a social media post, McTeague wrote, "Thanks to short-selling on futures markets & despite a historical drawdown in US oil inventories, fuel prices sold off generally, meaning a 9 ct/l drop in #GasPrices & #DieselPrices for Friday across most of ?? except maritimes."
Friday's expected decrease follows a series of sharp increases earlier this month, which contributed to Canada's inflation rate rising to 2.8 percent. Despite these recent hikes, analysts remain optimistic that prices will stay below $2 per litre for now.
Gas prices in the capital region have been highly volatile, and experts advise motorists to fill up strategically to take advantage of the predicted drop. The ongoing uncertainty in global markets and geopolitical tensions continue to influence fuel costs, making future predictions challenging.
