Last week Monday, I forecasted that the U.S. national average could fall to $3.54 per gallon while prices in Canada could fall to 121.6c/L.
While the national average did drop in both countries, I was slightly off as the price of crude took a big bounce higher after I made the forecast. The U.S. average dropped to $3.59 while prices in Canada fell to 122.6c/L.
As many know, the oil markets have been quite volatile along with stocks and other commodities. The price of crude two weeks ago was close to $100, then dropped to $76, but now has risen again to $87/bbl. What it meant is that gas stations dropped their prices, but had to virtually stop lowering prices because they were faced with a sharp rise in the wholesale cost of gasoline.
This week may be slightly more difficult to predict as the market digests new news, the dollar weakens, and the stock market rises.
By next Monday, the U.S. average may fall to $3.58 per gallon while prices in Canada could fall to 121.9c/L.