Get ready for 2018 to be the most expensive in recent memory for the cost of fuel.
Dan McTeague, a Senior Petroleum Analyst with GasBuddy.com says with a combination of bad weather, unsettled markets and a lack of ways to ship oil out of Canada, we’re going to pay more at the pumps.
“There is going to be a much more intense demand for diesel and furnace oil and natural gas products,” he says. “It’s because of the extended and prolonged cold weather experienced in a good part of Canada and the United States.”
McTeague says rather than seeing prices drop in January and February, we may actually see prices remain firm.
“That means gasoline will also be in for the ride,” McTeague said. “Rather than seeing prices drop in January and February, we may actually see prices remain firm. And in the case of diesel — go higher. And that will set the stage for higher prices as we head into the spring time, when demand resumes.”
“The U.S. is also exporting a lot more of its diesel and its gasoline, and of course, it’s oil – because it can,” McTeague said. “And Canada, which is limited in terms of its pipeline infrastructure, the U.S. is taking advantage of exports that are also having the effect of driving up prices for us here in Canada.”
McTeague released his outlook last week for the cost of fuel this year and says it’s not looking good for consumers.
“It’s almost, if you will, a double-whammy,” McTeague said. “Because of pipeline restrictions and delays and opposition, we have less ability to bring our product to market – which explains why Canadian oil is being discounted by as much as 26-dollars-a-barrel. You put that into perspective, that’s a real drag on the Canadian dollar.”
He says that will set the stage for higher prices as we head into the spring time, when demand resumes.