petrol prices Analysts say crude oil prices fell by about 12 cents overnight in Ontario and across much of Canada after a big drop in the price this week.
On Thursday, major cities in Ontario saw GasBuddy reporting prices drop by about $1.79, while cities like Vancouver and Montreal saw prices drop by about six cents.
Elsewhere in Canada, prices should catch up soon in Ontario, said Roger McKnight, chief petroleum analyst at N-Pro International, who expects prices to continue to fall in the coming days.
“The 12 per cent (fall) was basically due to market forces. Three more will drop tomorrow, and believe it or not, I’m looking at another seven on Saturday.
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Gasoline inventories have declined, although they are still low, he said, pointing to a change to come largely from a shift in investor sentiment.
“Somebody on Wall Street said let’s bang a futures down in the futures market on New York Harbor because they think we’re headed for a recession here and it’s going to seriously destroy demand. People There won’t be a need for more petrol because they’re not going anywhere, so the prices have come down. If you ask me, it’s around the table.”
CommodityContext founder Rory Johnston says the fall at the pump comes after crude oil prices fell below US$10 a barrel on Tuesday.
“The big thing we’ve seen over the past month during this week is a very clear drop in both the price of crude oil globally as well as the relative price of gasoline.”
The price of gasoline is another way to refer to the refinery margin, or the difference in price between crude oil and refined gasoline.
Prices at the pump are driven by both higher crude oil prices and higher refinery margins as processors have limited capacity. Johnson said that while crude oil prices are moving above $120 a barrel, consumers are paying $180 a barrel because of refinery margins.
Speculators said that although those margins fell by about 25 percent on Tuesday and Wednesday, and it’s not clear what exactly caused the reversal, Johnson said it was concerned about future demand linked to bearish fears. Is. Don’t bet on future prices, or more refinery capacity coming online. after the maintenance season.
“Right now, unfortunately, it’s a billion dollar question. And I think the challenge is that we don’t fully know what it’s actually doing.”
He said that given that crude oil prices were trading above five per cent on Thursday, there is a possibility of volatility in the prices.
“What we’re going to see is, you know, prices fluctuate more and more consistently, but I don’t think we’re at that level right now or we want that kind of true and kind of relief. For the rest of the summer. This is expected at the consumer level.”