Gas prices expected to drop 7 cents this weekend as coronavirus fears impact oil markets
OTTAWA -- The cost to fill up the gas tank is a little cheaper in Ottawa today, and a gas price analyst predicts gas prices could eventually drop below 90 cents a litre.
Gas prices dropped 3 cents overnight at most gas stations around Ottawa. According to OttawaGasPrices.com, the average price of gas is $1.04/litre in Ottawa.
Canadians for Affordable Energy President Dan McTeague tells CTV Morning Live that prices could fall another 2 cents on Saturday, and a further two cents on Sunday.
Gas prices have dropped as global demand wanes due to the threat of COVID-19 slowing the world’s economy.
“It looks like more bad news globally with respects to the spread of the coronavirus is leading to markets really shedding their value. That’s not just oil and gasoline but all commodities,” McTeague said Friday morning.
“The general trend is that we’re likely to see prices go well below where we saw this time about a year and a half ago, when we saw prices in the 97-98 cents range at the highest.”
McTeague predicts that once oil prices drop below $40 a barrel, Ottawa motorists could see prices eventually fall below 90 cents/litre.
McTeague says the demand for oil will continue to decline due to the coronavirus, which will impact the Canadian economy.
“When you consider how many factories are idled in China, second largest consumer of oil demand, doesn’t matter how much supply you have out there the reality is that there’s no buyers. This could lead, happily, to lower prices but the underlying problem is what it does to the Canadian economy.”