Gas Prices To Drop To Around $1/Litre Across Canada
It looks like the pumps are participating in Black Friday, as many parts of the city will see the gas price drop to its lowest in five years.
Drivers are expected to see a two-cent drop in gas price by Sunday, according to Dan McTeague of Gasbuddy.com, and will continue to decline in the weeks ahead.
The plunging price is primarily because of a growing glut of oil flooding the global market place, driving crude prices down towards $70 USD per barrel.
On Thursday, OPEC, the Organization of Petroleum Exporting Countries, said they would not cut oil production, despite sliding oil prices.
“Mostly a battle between new oil producers in the US and Canada vs OPEC, global economy is over supply by some two million barrels of oil a day” McTeague explains.
“And that is not about to end with OPEC’s decision to ignore the obvious and decide to continue output at what appears to be record levels.”
He also believes prices won’t spike anytime soon.
“I don’t see anything that would indicate prices would drive back to a $1.20-$1.30, what you see is pretty much what you’re going to get within 5 cents of a litre.”
Heading into the weekend, Toronto will see the price of gas drop another 3 cents, with the average price around $1.10 a liter.