Last week Monday, I forecasted that the U.S. national average could rise to $3.73 today while prices in Canada could rise to 127.2c/L.
It would appear that I was a bit high in both forecasts for the U.S. and Canada. Prices in Canada are currently showing up as 126.6c/L while prices in the U.S. currently sit at $3.705 per gallon.
A new week brings new hope and seemingly an agreement in regard to the political battle of increasing the debt ceiling. Many have asked what this could mean for oil prices- it could mean two completely different paths.
An agreement could mean a stronger U.S. dollar which generally pushes oil prices downward as oil is traded globally in dollars. On the other side, the currency side of oil trading could be ignored for bullish sentiment that an agreement could mean a more stable and improving economy as the U.S. takes its fiscal situation seriously. That could cause oil prices (and inherently gasoline prices) to rise as it is viewed that a healthy economy means more consumption.
I expect that oil prices will continue to gyrate between $95-$99. If the breach the $100 target, we could see big trouble. For this week, my eyes (or at least one) will be focused on the reaction to the debt ceiling "agreement".
Having said all this, by next Monday I expect average prices in the U.S. to fall slightly to $3.69 per gallon, while in Canada prices will fall to 126.2c/L. Most communities will see small (if any) decreases. If there's any new news, we'll cover it on the
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