Marvin Ryder: low gas prices won’t last

We’re expecting to see another drop at the gas pump tonight, bringing prices to what could be their lowest in four years.

But before drivers get too comfortable, Marvin Ryder of the DeGroote School of Business says he expects gas prices to be on the rise once again by the new year.

“We had a meeting last week of OPEC, the nations said they were going to keep pumping at the same rate they always have to keep the supply strong. I have to tell you I find that hard to believe.”

“I know some of the break-even points for the oil they’re pumping out of the ground, if this price were to fall to say, $55 a barrel or $50 a barrel, some of the countries need to turn off the tap, it’s costing them too much to get the oil out of the ground for the revenue they’re getting back.”

“I still think at some point; maybe it’s going to be 3 months, 4 months, 5 months, we are going to see the supply cut back and prices stabilize. Maybe not go back to $1.20, but they’ll edge back up in the new year.”

Ryder also predicts that prices could fall below a dollar per litre by New Year’s Eve.

Gas price links:
Tomorrow’s Gas Price Today
Hamilton Gas Prices