Potential fluctuations in gas prices this summer may be attributed to the influence of Trump, according to an analyst's view.
Get ready for the upcoming summer driving season, folks! Despite the typical price patterns we usually witness during May long weekends, analyst Roger McKnight from En-Pro International warns that this year's prices might throw us a curveball thanks to the infamous "Trump factor."
This factor could disrupt the traditional price patterns for gasoline, causing us to rethink our expectations for the summer season. The federal consumer carbon levy's demise, following Prime Minister Mark Carney's decision to do away with the charge on April 1, might have played a part in stabilizing pump prices. However, Donald Trump's tariffs and geopolitical blatherings could still cause some turbulence in the market.
Remember the levy? It added 17.6 cents per liter to gasoline prices. Interestingly, even with its disappearance, prices at the pump are still around 15 cents per liter lower than pre-change rates. This could indicate that refineries aren't running at full capacity, with industry estimates suggesting they're currently operating at about 90%.
This is unusual for this time of year as the driving season looms ahead. Given the poor refining margins, refineries might choose to hold back on production, affecting supply and pushing prices up.
As for crude oil prices, they've been rather weak recently. West Texas Intermediate, a US benchmark for light oil, has been floating around the $60 per barrel mark in recent weeks, around $10 lower than what it was just six months ago. In case you're curious, crude oil makes up about 42% of the pump price, with taxes, refining, distribution, and marketing accounting for the rest.
Stay tuned for further updates on the potential impact of the "Trump factor" on gasoline prices during the summer driving season. Market volatility, policy changes, crude oil prices, refinery capacity, consumer confidence, and sentiment are all variables that could affect prices. Let's hope we don't end up driving through a storm!
After the demise of the federal consumer carbon levy, stabilized pump prices might give a false sense of security in upcoming summer. Unexpected tariffs and geopolitical uncertainties, particularly from Canada's neighbor to the south, could still influence the gasoline market, causing turbulence in Toronto's sporting community as well, given the city's heavy reliance on automobiles for various sports events.
