You might want to fill up on gas under a loonie a litre while you have a change.
A gas prices analyst is predicting a sharp increase at the pumps in the next day or so in southern Alberta.
Dan McTeague with gasbuddy.com says wholesale prices have been rising due to speculation about a lack of supply from a Chicago area refinery, and that’s one the reasons behind an expected increase of between 4 and 7 cents a litre in Calgary.
We are price-takers in Calgary. We get our price signals from Edmonton refineries and they take their cue from the Chicago futures markets, and that’s gone up about 13 cents a gallon in the past couple of days in light of the problem at this one very large refinery.”
McTeague expects we’ll see the price spike to 99.9 cents a litre anytime between now and tomorrow. Gasoline prices are also expected to rise in parts of Saskatchewan and B.C.
Meanwhile McTeague says we shouldn’t read too much into a slow but steady climb in oil prices as of late.
West Texas crude was trading at over $48 U.S. a barrell Thursday morning but McTeague says this has to do with statements coming out of the Middle East.
“A lot of that is a bit of hype over what some perceive to be statements by the new Saudi energy minister that there could be a production freeze. But we’ve seen this play before. I think it’s a bit of a false start.”
McTeague says there’s no real reason while oil prices should be heading up, especially when countries like Iran and Iraq are pumping record amounts of oil into the market.