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Petroleum Analyst Patrick DeHaan says he doubts gas prices will surge the way some social media posts describe. (File Photo)
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Gas prices are expected to be volatile as the conflict with Iran is continuing, and oil supply issues may begin to crop up. That's being looked at because Iran itself is a major oil producer, and they have mentioned blocking the nearby Strait of Hormuz, from which 20 per cent of all oil exports run.

Such a move would lead to declines in oil and gas supply and a subsequent rise in prices.

Gas Buddy's Head of Petroleum Analysis Patrick DeHaan says that while the situation is currently looking concerning, it's not as bad as some social media posts make it out to be.

"I do expect there to be some level of impact. I've seen a lot of social media posts suggesting that gas is going to skyrocket and potentially hit new records. But that is certainly why we don't always listen to social media, because many of those claims are just vastly overestimated."

"I think this is going to be a very low level impact on most Canadians, at least for now. If the situation worsens, we'll keep an eye on it."

DeHaan's most recent update was sent out on Monday, after continued strikes made it look as though the situation was still unfolding.

"Surprisingly, oil prices that were up Sunday and electronic trading have now gone into the red. That's right, oil prices actually down Monday morning."

Despite the correction, he states that pump prices will rise a bit. That rise will actually look similar to what consumers were seeing last week before escalations took place.

"Motorists will likely continue seeing a slow but steady increase in gas prices for now. That increase from here on out in most areas will probably be maybe $0.10 to $0.15 (miles/gallon) over the course of this week. So again, very similar this week at the pump to what we saw last week, you don't really have to worry about massive spikes just yet."

The steadier increases will continue, with diesel being a bit more pronounced, with a predicted $0.15 to $0.25 (miles/gallon) rise.

 

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