spflaum / Depositphotos.com
FORT McMURRAY — Gas prices are continuing to rise in Fort McMurray and across Canada as oil markets react to escalating tensions around the Strait of Hormuz.
In Fort McMurray, prices range from 137.9 cents per litre at Petro Canada in Thickwood to 127.9 at Mobil downtown, with the citywide average now at 129.9, according to GasBuddy data.
Patrick De Haan, head of petroleum analysis at GasBuddy.com, says nearly all of the recent move in crude is tied to elevated geopolitical risk as Iran threatens vessels transiting the narrow waterway, which handles more than 20 per cent of global crude flows.
At mid morning Tuesday, West Texas Intermediate was trading around 76 U.S. dollars per barrel and Brent crude near 83 dollars, according to GasBuddy market commentary.
De Haan says wholesale gasoline prices were up 12.5 cents per gallon Tuesday morning, while diesel jumped 34.7 cents, tightening markets further.
GasBuddy data shows the U.S. national average for gasoline has climbed above three dollars per gallon for the first time this year, marking the largest single day increase since March 2022. The national diesel average reached 3.86 per gallon, the highest level since May 2024.
De Haan says retail fuel prices move quickly because stations price based on replacement cost rather than what was paid for existing inventory.
He says the national average gasoline price could rise another 10 to 25 cents per gallon over the next week or two if tensions persist.
Comments