Wait, given that OPEC controls the market price, especially given Saudi’s capacity to increase/decrease production, why would we expect them to let prices fall significantly?
Because the reason oil companies have been making record profits is because production was not cheaper?
Is that the argument being made? Oil faced with higher costs = higher profits,therefore lower costs = lower profits?
gas in great Montréal: 1.52CA$/L
gas in USA couples minutes drive: 1.12$CA/L
I just filled my tank, ~60L, saved 24$CA
Generally pump prices aren’t greatly influenced by oil prices, unless there are large swings. I don’t recall the exact breakdown of the pump price but there are explainers out there. What stuck with me is that the oil price isn’t a huge driver.
Pump prices are affected by oil price: when oil goes up, pump price goes up. When oil goes down, pump price goes up. Simple as that ;)
Here’s the breakdown in Canada:
Oil price constitutes less than half of the pump price, sometimes a lot less - a third in Vancouver. As a result movements in oil price could be significantly attenuated. Sometimes even completely offset by movements in other components of the pump price. And this isn’t theoretical. I’ve seen plenty of examples over the years.
Source: https://www.canadianfuels.ca/our-industry/gasoline-prices/
Dang those are some nice prices!
Yup I was surprised to see the gallon for US$3, so 3*1.4 (exchange rate) = CA$4.2 per gallon, divide per 3.78 and it makes CA$1.11 per liter
I’m hopping for gas prices to go under 160 on the island!
