Gas To Hit Lowest Level Since February 2007 On Tuesday
Posted October 27, 2008 12:00 pm.
This article is more than 5 years old.
The stock markets are a disaster, your retirement fund is bleeding money and it’s getting harder to arrange a loan.
You might wonder if there’s any good that can come out of the ongoing economic meltdown.
But it turns out these financial clouds do have one silver lining: the price of gas is going down again, and this time to levels we haven’t seen since February 2007.
Liberal MP and gas watchdog Dan McTeague is predicting prices at the pumps will fall to 93.1 cents a litre for regular, a drop of another 3.7 cents.
Oil fell again on world markets Monday to its lowest level in a year, before rebounding slightly to close at US$63 a barrel. But it’s still far off the record high of nearly $150 a barrel reached in July.
It comes despite the fact OPEC unveiled plans to start a large production cutback next month, a move designed to push the price of oil back up.
“The market ignored OPEC’s attempt to shore up prices as there are larger, long-term problems plaguing the market that a short-term production cut cannot overshadow, including softening demand, institutional unwinding and the credit crunch,” explains Raymond James & Associates analyst Darren Horowitz.
How low can it go? It’s hard to say how long this limbo dance might continue but keeping your tank topped up while it does is a good way to prepare for the inevitable rise at some point in the future.
According to the Ministry of Natural Resources, the last time the price of gas was this low in T.O. was the week of February 20, 2007, when it was going for 91.5 cents a litre. But beware – seven days later, it skyrocketed to 97 cents, an increase of more than six cents.
There’s no immediate indication history is about to repeat itself.
