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Oil Prices Drop Sharply, but Canadian Drivers Won’t See Any Relief at the Pumps for a Few Days
Analysts say prices could ease by about 11 cents a litre by Friday as crude markets react to the ceasefire deal.
- West Texas Intermediate crude fell nearly 18 per cent to about US$95 per barrel following a ceasefire deal, prompting En-Pro chief petroleum analyst Roger McKnight to predict Canadian gas prices will drop around 11 cents to roughly $1.75 per litre by Friday.
- Iran largely closed the Strait of Hormuz in recent weeks, a narrow waterway through which 20 per cent of the world's oil supply normally passes, driving crude costs to around US$115 per barrel before the ceasefire announcement.
- Gasbuddy petroleum analyst Matt McClain explained that "There's some forward momentum in the overall petroleum system" that must unwind quickly, noting retailers purchased crude at higher costs and face losses if they reduce prices prematurely.
- Aviation fuel costs, which account for about 30 per cent of airline operating expenses, remain elevated after supply halted in late February, and domestic airfares have already increased an average of 15 per cent overall, according to McGill University lecturer John Gradek.
- Although a ceasefire was announced, the agreement showed signs of fraying on Wednesday, and financial markets are still pricing in rate hikes from the Bank of Canada as oil prices remain significantly elevated compared to pre-war levels.
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12 Articles
12 Articles
The price of crude oil fell by 15% on Wednesday after the truce that followed the US President's apocalyptic threats against Iran. Should we expect a fall in pump prices soon? Probably.
·Montreal, Canada
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castanet.net+3 Reposted by 3 other sources
Oil prices drop sharply, but drivers won't see any relief at the pumps for a few days
The price of crude oil fell sharply on Wednesday after the U.S., Israel and Iran agreed to a ceasefire, but the drop is not being reflected at gas station pumps
·Kelowna, Canada
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The Toronto Star+2 Reposted by 2 other sources
Oil prices drop sharply, but drivers won’t see any relief at the pumps for a few days
CALGARY - The price of crude oil fell sharply on Wednesday after the U.S., Israel and Iran agreed to a ceasefire, but the drop is not being reflected at gas
·Toronto, Canada
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Coverage Details
Total News Sources12
Leaning Left4Leaning Right1Center3Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 38%
12%
Factuality
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