U.S.-China trade tensions, the inverted yield curve and the risk of a no-deal Brexit all mean less pain at the pump this Labour Day weekend, according to a noted gas price analyst.
Dan McTeague said the current confluence of economic and geopolitical tensions have pushed gas prices in Canada down to an average of $1.15 cents per litre, versus the $1.30 drivers were paying at this time last year.
“All these things are creating compelling counterweights to prices moving up,” he told Yahoo Finance Canada on Thursday. “There is too much nervousness out there.”
McTeague expects a two cent jump in gasoline wholesale prices resulting from an oil price rally on the back of the U.S. Energy Information Administration announcement that crude stockpiles dropped last week. He said that could translate to lower pump prices in major cities early Friday.
“In the afternoon, that will drop three or four cents a litre. That’s what happens intraday, every single day,” he said. “Retailers beat themselves up in the evening.”
McTeague said he isn’t expecting major price swings heading into the holiday weekend. He added that gas prices will get further relief next month, as stations switch to a cheaper winter blend of fuel.