A weak worldwide economic recovery is contributing to a drop in oil prices – and that could be good news for people at the pump.
A senior analyst with MJ Ervin & Associates say a sustained drop in oil prices is needed for better gas prices to follow suit, and that’s what we’re seeing on the markets over the last ten days.
“Wholesale prices have come down about four or five cents over the last week or so,” said Jason Parent. “If crude continues this trend or stays at the level it’s at now, then yeah, you’ll likely see (gas prices) come down a little bit more.”
Oil lost another $2.20 U.S. this morning, falling to $79.10 U.S> a barrel – down 17 per cent since the start of last week.
Gas prices in unregulated markets quickly followed suit, dropping by nearly three cents in southern and eastern Ontario as well as southern Quebec.
Gas is selling for about $1.23 a litre in Toronto and just over $1.27 in the Montreal area.