Surging Oil Prices to Cause Headaches for Canadians at Pumps Ahead of Holiday

With crude oil prices steadily accelerating over the past several months, gas prices across Canada and the US have forcing drivers to pay more at the pumps.

With crude oil futures rising above $77 per barrel on Wednesday after nearly hitting $80 per barrel— the highest since 2014— during the prior trading session, consumers have been paying significantly higher prices when fuelling up their vehicles.

In Winnipeg, for example, gasoline prices surged by 10 cents in a 24 hour period to above $1.42 per litre— the highest in almost 13 years. Toronto is also grappling with elevated fuel costs, which are expected to hit as high as $1.45 per litre before the end of the week, as cited by CTV News.

The situation is much the same in the US, where the national average price rose to $3.22 per gallon— the highest since 2014. Fuel pumps in California, meanwhile, have soared by over a dollar to $4.42 per gallon, according to data from AAA.

The latest reflationary surge in gasoline prices comes as demand for petroleum products heats up alongside the lifting of Covid-19 restrictions across major economies. On the other hand, crude oil supplies remain constrained, as Hurricane Ida wreaked havoc on production in the Gulf of Mexico, while OPEC+ has declined to raise output, and instead maintain a previous schedule of an additional 400,000 barrels per day.

Information for this briefing was found via CTV News and AAA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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