MONTREAL -- The weak value per barrel of crude oil is continuing to cause a sharp drop in gas prices in Quebec.
Two weeks ago, Saudi Arabia and Russia launched a price war that plunged the price per barrel to the lowest it’s been in 18 years.
Essence Montreal, which collects information on the lowest and highest prices in several regions of Quebec, reported the average price per litre of regular gas is slightly above $0.92 as of Friday.
In the Montérégie, on the Island of Montreal, in Laval, as well as in the regions of Quebec City and Gatineau, the price ranges between $0.84 and $0.93.
The price is even lower in other parts of the province, notably in Trois-Rivières.
Oil prices rose more than 24 per cent on Thursday, the largest gain of all time in one session, but it remains weak.
On the New York Stock Exchange, a barrel of crude was worth just US$27.61 as of Friday morning, though it continues to rise.
Gas prices are also being affected by a decline in demand. In Canada and other countries, isolation measures to contain the new coronavirus pandemic have reduced the number of vehicles on the road and the demand for fuel.
The 24 per cent rise in crude oil prices on Thursday also pushed the Toronto Stock Exchange benchmark higher. The S&P/TSX Composite Index climbed 3.8 per cent.
This report by the Canadian Press was first published March 20, 2020.
