Gas prices could rise in December, should be steady until then

Gas prices in Prince George should remain steady for the immediate future.

That’s according to Senior Petroleum Analyst with GasBuddy.com, Dan McTeague, who said we need to wait for a better indication from the Chicago Spot Market. That market is currently seeing a “sideways move”, down seven cents/gallon Tuesday before coming back up five cents/gallon Wednesday.

All of western Canada is seeing slightly higher-than-expected prices for this time of year. McTeague explained what causes this.

“Much of it has to do, to some extent, with oil but more importantly with wholesale prices for gasoline remaining significantly higher as a result of some US refiners still not coming out their fall maintenance. That’s creating a bit of a crimp in supply in that critical region.”

The drop in oil value of $21/barrel in one month may have caught producers off guard, said McTeague. US sanctions on Iran had been a talking point throughout the summer, including oil, and what effect it would have on global supplies.

McTeague said Iraq based-OPEC is likely to cut back on production by about 1.5 million barrels, which may push prices back up. OPEC is scheduled to have its meeting December 9th.

“That may have the effect of pushing prices back up towards the maybe $60 to $65 range for WTI.

“I think we’re good for the next few weeks but come December we could be in for an unexpected surprise of slightly higher prices. Perhaps as high, on average, of an additional five cents per litre.”

According to GasBuddy.com, gas prices in Prince George are hovering at 125.9 cents per litre.