Gas prices are on their way up in the Montreal area affected by the aftermath of Hurricane Harvey in the U.S
02 September, 2017, 01:24
Hurricane Harvey has wreaked havoc in Texas along the Gulf Coast, causing oil refineries to pre-emptively shut down production.
The closure of some refineries in the southern United States is reducing the supply and the start of the long weekend of Labour day will increase the demand.
Drivers will pay more at SC gas pumps and across the United States through Labor Day due to Hurricane Harvey.
According to the price setting regulations, if the price fluctuates between six cents and eight cents a litre, the URB may use the interrupter to set the price ahead of the normal weekly price setting time of midnight Thursday.
Over seven days, Saskatoon saw gas prices rise from 99.9 cents a litre to 109.9 cents as of Friday.
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Motorists awoke to a hike of about five cents a litre on Friday, and can expect the price to rise another nine cents on Saturday, says petroleum analyst Dan McTeague.
Nova Scotia's benchmark price of gasoline is based on an average of the daily market price for refined gasoline on the New York Mercantile Exchange, converted into Canadian dollars.
The online gas price monitoring site essencemontreal.com is showing the $1.35 price in several Montreal neighbourhoods, including Ahuntsic, Villeray, Saint-Henri, Saint-Léonard and downtown.
"That will have our gas prices high over Labor Day probably even through the middle of September", said Rhonda Keller, branch manager for AAA of Rapid City.
Thanks to gasoline inventories being pretty high across the nation, gas prices haven't seen any steep gas price increases. There is enough gasoline to meet needs, especially with Edmonton and Regina refineries alongside smaller ones elsewhere. However, most of the change is being driven by pessimistic speculation on the part of oil traders in the Northeast, he said, adding that it's too early to say whether there will actually be a shortage in the U.S.
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But down the street, at the QT, people fumed at what they will have to become accustomed to - prices over $2.44 a gallon. Low oil prices made it more profitable for refiners to turn oil into gasoline, and they created even more than needed.
Prices would be higher if not for record refinery runs in 2017, said Matt Smith, director of commodity research at Clipperdata. The spread between Brent and U.S. crude hit its widest in more than two years on Tuesday, before rising slightly to $4.92.
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Gas Prices Rising In The Wake Of Hurricane Harvey
That's up five cents from Tuesday and up 10 cents from the August 21 statewide average of $2.18. "It's always a caveat". DeHaan said gasoline prices at the pump will eventually recede, but not before the flood waters tell the full story.
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