Ontario gas prices headed for major spike in wake of Harvey

Sep 03, 2017, 16:33
Ontario gas prices headed for major spike in wake of Harvey

Gas prices in Regina jumped by seven cents a litre earlier this week.

Prices already jumped almost 10 cents in some places since Harvey roared ashore in Texas a week ago.

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.

The online gas price monitoring site essencemontreal.com is showing the $1.35 price in several Montreal neighbourhoods, including Ahuntsic, Villeray, Saint-Henri, Saint-Léonard and downtown.

"Gas prices are up in Winnipeg; on Friday, this North End station was at 107.9 cents a litre".

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 USA total is off-line, with a further 1.8 million bpd or 10 per cent operating at reduced rates.

In Western Canada this won't affect gas prices as much.

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McTeague says with supply down, "there are very few refineries that make enough gasoline to supply markets south of the border".

McTeague said Canadian fuel prices are rising faster than U.S. prices because Canada is undersupplied with domestic fuel, causing an overreaction to supply shortages resulting from the closure of key refineries and gas pipelines on the U.S. Gulf Coast.

"We've already seen, of course, the higher prices associated with that disruption".

"Until we get engineers into the refineries to assess the damage it's all speculation", he said.

"This is normally the time where refineries go into scheduled maintenance, but with all these refineries going into what I'll call 'unscheduled maintenance, ' it will put pressure on the ones still running to go on longer", Mr. McKnight said.

In Vancouver, McKnight predicted little change on the weekend but McTeague says he expects a five-cent jump on Saturday.

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