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Gas prices to continue climb

02 September 2017

IHS Markit said in a report Friday about 3.6 million barrels per day of Gulf Coast refining capacity or 20 per cent of the USA total is off-line, with a further 1.8 million bpd or 10 per cent operating at reduced rates.

The effects of Tropical Storm Harvey have shut down an estimated 30 per cent of USA gasoline production.

Prices at the pump have already leapt more than 10 cents over the past week in much of Ontario. Sherbrooke, amounted to $ 1.21, while the price of the Saguenay has climbed to $ 1.22 and at $ 1.24 in Rimouski.

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Senior petroleum analyst Dan McTeague, of GasBuddy.com, predicts gas prices are about to skyrocket.

Although gas prices may hurt the wallet, people in South Dakota are traveling, but not as far as you think.

"That will have our gas prices high over Labor Day probably even through the middle of September", said Rhonda Keller, branch manager for AAA of Rapid City.

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According to McTeague, "Canadian gas prices rise faster and higher than anywhere else in the world".

"Increases should start to slow next week sometime, maybe midweek", he said.

But the era of cheap gas likely isn't over - prices are expected to quickly go back down once Gulf Coast refineries go back online, Kloza said. "In Canada, we barely produce enough gasoline to meet our own needs".

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McTeague and Roger McKnight, chief petroleum analyst for EnPro International, agreed that prices on the Prairies will be stable over the weekend after rising by five to 10 cents to about $1.10 per litre in the past few days. Across Canada, gas prices are up an average of 9.5 cents compared with last week. However, most of the change is being driven by pessimistic speculation on the part of oil traders in the Northeast, he said, adding that it's too early to say whether there will actually be a shortage in the U.S.

Gas prices to continue climb