Demand will keep Metro Vancouver gas prices high over summer: analyst
VANCOUVER (NEWS 1130) – Gasoline prices are hovering around historic highs in Metro Vancouver, and an analyst says demand could keep it high throughout the summer.
A liter of regular costs an average of $ 1.65, compared to the same period last year, when it cost about 40 cents less. Werner Antweiler of the UBC Sauder School of Business says you can blame the price of crude oil and the easing of COVID-19 restrictions.
“This is reflected in the gasoline prices that we also see at the pump,” he said. “At the start of the year, we were around $ 45 or $ 50 (a barrel), and now it’s almost $ 70 and quickly translates into the price increases you see at the pump.”
He says a price war between the Organization of the Petroleum Exporting Countries (OPEC) and countries like Russia earlier this year helped keep prices low, but has since subsided, resulting in a further increase in consumer costs.
Antweiler believes prices will be stable over the summer driving season as more people choose their vehicle over the plane for travel.
“We can certainly expect more trips over the next couple of months, which means gas prices will remain high as demand is essentially at levels closer to 2019 than what we saw last year.” , did he declare. “The right comparison is not against last year, which was exceptional, but roughly against 2019. And for that, in fact, we see that crude oil prices are around this. level that they were in 2019 a little higher than then. “
Antweiler doesn’t think gas prices will go up much more than $ 1.60 per liter and, in fact, could go down if a new supply becomes available.
“If, for example, sanctions are lifted against Iran, perhaps following a new agreement with that country concerning its nuclear program,” he said. “All of this could actually mean that there could be more supply online and if that actually happens we should actually see a drop in prices.”
With files from Hana Mae Nassar