Gas prices to spike to seven-year high this week

DM

And so begins the winter of our discontent. That’s what’s in analyst Dan McTeague’s crystal ball as gas prices soar to their highest point since 2014 — with 142.9 cents per litre expected at the pumps by Wednesday. “It’s that old proverbial ‘perfect storm,’ but much of it is deliberate,” he said. “There’s nothing stopping these prices from pushing to $1.50 per litre in the next few weeks.” Tuesday proved a volatile day for the energy markets with natural gas prices spiking nearly 15% in anticipation of the winter heating season, McTeague said. The last time gas prices were this high, McTeague said, was on June 21, 2014 when a litre of regular unleaded sold for 143.9. “At that time, oil was trading for $109 per barrel,” he said, referring to West Texas Intermediate (WTI) — the benchmark used to establish Canadian gas prices. “It’s now, it’s just $79.80, so the question is how come?” That, he said, is largely due to taxes, not to mention the weak Canadian dollar. “It’s only 125 pennies to buy a U.S. dollar,” he said. “When we last saw these prices, the Canadian dollar was more like $1.10. “We’re not selling enough oil, and the oil that we are selling is shut in, thanks to pipeline blockages.”

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