Why did gas prices increase recently, and will it continue to climb?

Drivers who will fill their gas tanks during the past week undoubtedly noticed a recent high price in pumps throughout Canada.

The increase in the world is also seen in the world oil It mainly interacts with the latest developments outside the Middle East. especially, Rising tensions between Iran and IsraelWith increasing concerns, other countries can be attracted through diplomacy or even military participation.

Canada gets a large percentage of oil, which is revised in gasoline products, from Middle East sources, including Saudi Arabia and other OPEC+ partnership countries.

“In late last week, as Iran and Israel launched attacks on each other, we saw oil prices escalating by 10 percent, and we have already started to see this liquidation to what Canadians drive in pumps,” Patrick de Han says in Gasbuddy.

“The national average increased about two years per liter last week, and in Maritimiz or the West Coast, it exceeds three to four cents per liter, with more coming.“

The average price of a liter in Canada is about $ 1.36 for the normal grade, with the average rate of Manitoba about $ 1.28, and the highest in British Colombia at about $ 1.55, according to Gasbuddy data.

Although The growing tensions in the Middle East are the main cause Gas prices have increased in the world recently, and there are many other factors that enter the prices that consumers pay in pumps, and can be very unexpected at times.

The oscillation price for raw oil is usually the issue of supply and demand. In other words, how many oil barrels are stored in the world for shipping compared to consumers they need, or they will need it in the near future.

The uncertainty surrounding the global trade war and tariff policies of US President Donald Trump were reflected in prices in gas pumps. This is because oil companies determine prices based on what they expect to demand the short term.

Many economists have warned against this Definitions can lead to global recessionAnd the economic product usually translates into less fuel consumption.

With expectations in early spring that the demand for fuel, and thus crude oil, will decrease in the event of economic shrinkage, oil companies moved to low prices.

“When the economy is better, we also consume more oil,” says De Han.

Going now

• Spanish local population release water to visitors in protests against mass tourism

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“The United States and its presidential administration have changed vigorously.

In early April, the average national gas price in Canada decreased to the lowest point so far at less than $ 1.29, which was soon time to implement the customs tariff on almost all countries in the world.

This was in addition to Prime Minister Mark Carne Consumer carbon removal priceThis is almost overnight gas prices at the time.

Another factor that may mean high gas prices in the near future is the inevitable rise in demand during the summer months.

This means the peak demand for fuel used to travel, including car, plane, train or boat, and using some entertainment compounds such as ATV and motorcycles, or even accessories and energy tools such as leaflets, papers and more.

The consistency of the peak during the summer year after a year leads oil companies to the beginning by adjusting and increasing production, in addition to storing distribution barrels throughout the summer.

Although this means that the peak demand and high gas prices may be just around the corner, this also means that the prices may come back slowly after reaching that peak.

“Over the summer, where oil construction supplies and refining refineries are implemented with seasonal maintenance, then the transition is carried out, which slightly reduces gas prices in the longest summer,” says De Han.

Therefore, gas prices may return to this natural trend if the situation in the Middle East (to) begins with reform, and if there is no new noise … things like the hurricane season in the United States may affect refining..“

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