Gas Prices Expected to Drop Again Friday
Prices are sliding following speculation about a U.S.–Iran peace deal that could reopen shipping through the Strait of Hormuz.
Gas prices at Ottawa pumps are expected to fall another three cents per litre Friday morning, bringing the average to around $1.71 per litre, according to petroleum analyst Roger McKnight at En-Pro International.
This follows a dramatic nine-cent drop early Thursday. McKnight and other observers attribute the recent slide to reports that the United States could be nearing a peace agreement with Iran—a deal that might reopen the Strait of Hormuz, a chokepoint through which about 25 per cent of the world's seaborne oil trade flows.
A reopened strait could lower the "war premium" built into crude oil costs, analysts say. Dan McTeague, president of Canadians for Affordable Energy, posted on social media Thursday that further drops were likely Friday and advised drivers to "hold off filling up" if possible. McTeague predicted diesel would also fall by 5 cents per litre Friday after dropping 7 cents Thursday.