Oil Prices Are Diving. Is That Good Or Bad For Canada?
For the first time in a while, oil prices in Canada are taking a nose dive, something that does not sit well for Canada’s oil producing provinces, namely Alberta and Newfoundland. However, it’s not all bad news for Canadians.
“With many oil projects in Canada only breaking even at the $80-a-barrel mark, we could see investment in Canadian oil drop off quickly if prices keep falling,” CIBC economist Peter Buchanan as published in Oil Prices Are Diving. Is That Good or Bad For Canada?
But, there is a silver lining to the current dip in oil prices – Low gas prices!
While we can expect to get some relief at the pumps after Labour Day each year, the current drop in oil prices is creating lower than normal gas prices across the country.
As reported by http://tomorrowsgaspricetoday.com, gas prices have fallen by about 15 cents per litre over the past few weeks, something that is welcomed by consumers. People need a break at the pumps and we are currently seeing a downward trend in the price of gas in Ontario.
However, this creates somewhat of a dilemma. “Therein lies the tension in Canada’s economy: When oil prices rise, energy producing provinces get richer, and other parts of the country get poorer. And vice versa when oil prices fall,” says Daniel Tenser in the Huffington Post.
A drop in oil prices not only has an impact in gas prices, it can also have an impact on energy cost, transportation costs, food prices and many other costs that are linked to oil pricing – creating potential cost savings for consumers in many areas. But, it can also have a negative impact on the economy.
So what is the best situation for Canada? Higher oil prices or lower gas prices? It depends on your take on things.
But, for the time being, just in case gas prices go up again, here are some tips for saving money on gas:
- Use rewards and points to cash in for gas cards
- Choose efficient routes
- Make a concerted effort to drive less
- Make sure you keep your car tuned up
- Remove unnecessary items from your trunk and back seat
- Drive more efficiently
What side of the argument do you fall on? Let us know your thoughts!