Gas Prices Are Going Way Up in Mississauga
- Author: Megan Austin Sep 03, 2017,
Sep 03, 2017, 16:32
Compared to Thursday, the commodity price has already jumped more than six cents a litre in NY, meaning the increase in New Brunswick is likely to happen tonight.
From around 1.08 earlier this week, local prices now range around 1.24 per litre of regular.
Gas Buddy Senior Petroleum Analyst Dan McTeague tweeted out on Friday that oil production is down roughly 30 per cent in the United States because of the storm.
IHS Markit said in a report Friday about 3.6 million barrels per day of Gulf Coast refining capacity or 20 per cent of the US total is off-line, with a further 1.8 million bpd or 10 per cent operating at reduced rates.
"The Colonial usually moves 2.5 million barrels a day", explained Mr. McTeague.
Gas retailers in Canada are not facing a potential shortage due to the slowdown in Texas production, but Canadian prices depend on US prices, with Eastern Canada taking its cue from New York, Albany, Syracuse and Buffalo, and much of Western Canada looking to Chicago and Minneapolis.
Hurricane Harvey has caused gas prices to spike. "There isn't a lot of spare wiggle room".
Games being relocated out of Texas due to Harvey
But that would have left Rangers' ticket holders for those games barely 24 hours to make arrangements to attend games this week. The Astros may play their series with the Mets at Tropicana Field as well, if public safety remains a concern in Houston.
Many U.S. refiners would like to turn to Canada for oil supplies, particularly because our lower dollar makes our petroleum products a good value.
"But right now we're not seeing that", he said.
A gas shortage in the USA could spill over into Canada, McTeague told Global News.
Some analysts have speculated that it could take months for the fuel market to return to normal, based on records from previous hurricane outages, but Ervin said it's more likely to be a few weeks as it appears there's been less damage to refineries and pipelines.
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.
"If you're driving with 75 litres and you're going to be travelling this weekend, the increase could be at least $7 or $8" extra to fill up, he said.