Gas expected to drop 13 cents on Wednesday: Analyst
· Toronto Sun
Another day, another change in gas prices for GTA drivers at the pumps.
Gas analyst Dan McTeague says he expects a “a big drop” in gas prices on Wednesday, with prices down 13 cents from $178.9 to $165.9 per litre, and diesel down 20 cents from $2.37 to $2.17 per litre.
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McTeague says once again, it’s U.S. President Donald Trump’s comments that are driving gas prices back down again after a roller-coaster ride since unrest in the Middle East began in late February.
“Trump’s comments on Monday that there may be some form of a deal and he’s going to withhold any type of military action as of (Monday) for five days in Iran (is behind Wednesday’s drop),” said McTeague, president of Canadians for Affordable Energy.
Trump backed down from threats, says McTeague
“He was threatening on the weekend to obliterate their energy, their hydro and whatnot. He’s backed off that. He’s trying to calm the markets and suggest some kind of deal be at hand, no one can confirm it except him, and even who speaks for that country. I guess it’s very hard to determine who speaks for Iran these days. But it’s caused the markets to breathe a sigh of relief (Monday), and so the dropped oil prices on that news dropped from 98 dollars a barrel to 88 dollars.”
McTeague said the last time gas prices were this up and down was during the global financial crisis of 2008.
“In 2008, we saw these kind of prices,” he said. “So it’s not unprecedented.”
Sadly, McTeague says that downturn in price will likely only last a day.
“Gasoline will go up Thursday by three cents a litre at this point,” he said. “Diesel up six or even seven cents a litre. It depends on what the markets perceive as geo-political threat and the continuation of disruption in supply. Diesel, of course, is the global workhorse of fuel, more than gasoline. It’s what drives the economy. Wednesday’s the day to buy.”
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