We saw another jump at the pumps overnight, with gas prices in the region rising by about 3 cents per litre.
You can blame the rise on several factors, including the price for crude oil and wholesale gasoline shooting up.
“Oil’s up about 20 per cent this year. Part of that has to do with speculators in the market. People, companies, banks buying oil on future’s contracts, taking a bigger than average risk right now, hoping for a big profit down the road,” said 570′s afternoon business editor Richard Southern.
“To some extent, it’s really investors hoping to make a quick buck that’s driving the price for oil, and consequently the price at the pumps.”
In addition, issues around the world – such as the unrest in Libya along with a rise in demand for gas from the U.S.
“One thing that really could send gas lower is a stabilizing of that situation in the mid-east,” Southern added. “If the oil in Libya were to get back onto the marketplace, that could drive the price down.”
“Also the U.S. economy [is] really starting to recover. We had some really good economic news out of the U.S. [...] signs of an improving U.S. economy means a higher price for oil, for wholesale gas, and a higher price at the pumps…”
As a result, the strengthening of U.S. market means a major drop in prices isn’t expected for quite some time.