Despite some concerns over an expanded economic slowdown, prices continue to drop for a litre of gas across Alberta. However, one expert believes the price point could rely heavily on a lack of disruptive weather south of the border.
Head of Petroleum Analysis for GasBuddy.com, Patrick De Haan says the price of gas in Alberta fell 2 cents a litre in the last week, sitting at an average of $1.39/l, with prices in Grande Prairie a little higher at $1.49/l on Tuesday. De Haan says while there are more positives on the way when it comes to price, they’re not a sure fire stick.
“We also switch back to cheaper winter gasoline in about a week and a half and that should bring prices a little bit lower,” he says. “As long as we can avoid a major hurricane in the Gulf of Mexico we should continue to see prices inch down.”
De Haan says oil prices perked up in recent days after OPEC announced a small production cut of 100,000 barrels a day. However, be believes the concerns are growing louder for an economic slowdown, which could push global consumption down even further, with the price going the other way.
“I think we are still on solid footing, as we will see a higher level of demand of COVID, but with the summer driving season is behind us, it’s likely going to continue to decline as Canadians get back to the normal grind and many of them still working remotely where possible,” he says.
“If we do see a more turbulent economic slowdown, we likely will see a drop in oil consumption,” he adds.
This time last year, the average price of a litre of gas in Alberta would set you back $1.33.