Business

Arab revolts drive pain at the pumps

Gas prices in Metro Vancouver climbed to an average of $1.30 per litre March 4. - File
Gas prices in Metro Vancouver climbed to an average of $1.30 per litre March 4.
— image credit: File

Average gas prices in Metro Vancouver climbed above $1.30 per litre Friday amid growing concerns about the potential disruption of crude oil supplies as a result of the Middle East crisis.

The pump price is now about 10 cents higher than it was a month ago and at the highest level since mid-2008.

Crude oil prices have shot up to well over $100 a barrel in anticipation the threat of revolution or civil war may spread to more countries as protesters try to topple Arab dictators.

Energy consultant Michael Ervin said retail gas prices could well climb higher this spring, typically the peak driving season when higher demand tends to lift prices.

That would certainly happen if oil prices also rise further, but could happen even if they stabilize close to current levels.

The highest price Metro Vancouverites have ever paid for gas was $1.50 per litre in July of 2008. Crude oil peaked at US $147 per barrel that same month.

Up to a million barrels of daily oil production is shut down in Libya.

Libyan oil typically goes to Europe, but buyers there will look elsewhere, driving up demand and prices on other sources.

Oil traders are also pricing in the possibility the pro-democracy revolutions may spread and cripple production at other oil-producing countries.

– with files from CTV

 

Vancouver Historical Gas Price Charts Provided by GasBuddy.com

 

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Vancouver Gas Prices provided by GasBuddy.com
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