Gas prices in Sask. could reach $1.50/L as conflict continues in Middle East: Analyst

Drivers in Saskatchewan may want to fill up their vehicles sooner rather than later, as gas prices could jump in the near future.

Matt McClain, a petroleum analyst with GasBuddy, said the escalating conflict in the Middle East is driving up prices for crude oil, which could impact what drivers are paying at the pumps in Saskatchewan.

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“That’s barring any de-escalation,” McClain noted. “We’re just not sure exactly how that’s all going to play out at this particular point.”

As of Wednesday morning, tanker traffic through the Strait of Hormuz, which connects the Gulf of Oman to the Persian Gulf, was down by about 90 per cent. McClain said 20 per cent of the world’s oil supply makes its way through the strait, so a major conflict in the Middle Eastern countries that border it, including Iran, can directly impact oil prices across the globe.

The analyst predicted that prices at the pump in Saskatchewan could rise as high as $1.50/L in the coming days.

“It’s all going to be contingent on how this conflict continues to unfold over the next couple of weeks as to whether or not we’re going to see prices continuing to go up,” McClain added.

Gas prices in Regina spiked to $136.9/L on Friday, the day before the U.S. and Israel’s attack on Iran. In Saskatoon, gas prices are averaging around $135.9/L on Wednesday morning.

After big early gains, oil prices began to stabilize on Wednesday as the war in Iran entered its fifth day. McClain said there are a lot of factors that will impact whether oil and gas prices continue to rise if the conflict continues.

“There are so many different scenarios that could play out where prices continue to rise,” the analyst explained. “But there are also scenarios out there that could take place in the coming weeks or days that prices may stabilize.”

He said the ongoing conflict in the Middle East has so far been very difficult to predict, which makes it nearly impossible to say exactly what will happen with oil and gas prices in the days and weeks ahead.

McClain said that for people feeling the crunch on their wallets with higher gas and diesel prices, there are a few things they can do to make the gas in their vehicles go a bit further.

“Make sure that you follow the speed limit. Slow down if you are used to driving a little bit faster than maybe you ought to. That’s going to help with efficiency,” McClain said.

“Properly inflated tires, oil changes, air filters, all of that can have an impact on the fuel efficiency…. That can help offset an increase in price. Probably won’t completely replace it, understandably, but at least it can help a little.”

Meanwhile, the rapid shifts in oil prices could have an impact on Saskatchewan’s provincial budget, which is set to be released on March 18.

–with files from the Canadian Press