Gas prices may rise due to the Fort McMurray fires, but only gradually
By CKOM News – May 9, 2016 – 5:06pm
WIKIPEDIA – Energy analyst Roger McKnight is predicting a gradual increase in the price of gas due to production cuts caused by the Fort McMurray wildfire
The wildfire around Fort McMurray may contribute to higher gas prices this summer — but they shouldn’t cause any immediate spikes.
Rather, in an appearance on Saskatoon Afternoon with David Kirton, energy analyst Roger Mcknight said lower production out of Northern Alberta will likely cause a more gradual rise in prices.
“A lot of people think this is going to be an overnight thing where prices are going to spike and the sky is going to fall and this sort of thing. Prices are going to increase, but certainly not overnight,” he said.
McKnight said large stockpiles of crude already in the system will act against price increases. He said the key will be to watch activity at refineries in Ohio, Chicago and Detroit.
“They use Western Canadian Select which of course all comes from Alberta. So if there’s a problem with upgrading the bitumen in Edmonton – which I think there is – then prices will start edging up.”
Overall, McKnight said we can expect higher gas prices in the coming weeks as we move into the summer driving season. But he said that is typical of this time of year, which has seen the highest gas prices in 12 of the last 13 years.