As oil prices tumble, prices at the pump could be next
Posted Oct 3, 2014 7:47 am.
This article is more than 5 years old.
The price of oil has dropped and it could mean savings at the gas pump.
Thursday, it tumbled to under $90 per barrel for the first time in over a year before recovering to end the day at $91.01.
Demand, geopolitical pressures, and price appreciation are all contributing to the fall, according to Chief Investment strategist with BMO Capital Markets Brian Belski who said we could be paying less at the pumps too.
“If oil prices actually go down and we see gas prices go down as a result, it’s an automatic positive for the consumer both in Canada and the United States. So, that would actually be a positive for consumer spending,” he said. “As the United States continues to stronger growth, we think Canada can hitch its wagon along with that and that could be very positive for Alberta and Canada overall.”
Belski said pump prices always lag behind the oil market.
He said Mother Nature could still put a dent in our wallets as many experts expect a harsh winter to cause prices to rise.
