Price of diesel could hit new record in Canada this weekend

CP24’s Courtney Heels has the latest on the pain at the pumps, despite an expected drop in oil prices overnight.

The price of diesel could soon break a record in Canada as oil markets continue to see volatility.

“We continue to see oil markets responding to the situation (in Iran) as it unfolds. Last night, U.S. President Donald Trump giving a speech and certainly oil markets pushing much higher after there is really little sign of de-escalation or addressing the Strait of Hormuz,” Patrick De Haan, the head of petroleum analysis at GasBuddy, told CP24 on Thursday morning.

“Everything is focused on the strait, whether or not the strait can be reopened, whether or not those ships that carry 20 million barrels of oil every day through the strait are allowed through and last night’s speech just highlighted that doesn’t look like that’s going to be a possibility.”

In the GTA on Thursday, gas prices hit $1.84 a litre, while diesel rose to $2.20.

De Haan said diesel prices could set a new record this weekend as it is expected to surpass $2.25 in the next 48 hours.

“Gasoline at about $1.80 is still about 40 cents a litre lower than its record. I don’t necessarily expect that to be imminently broken but if the problem isn’t solved in the weeks ahead, we could get closer to that level,” he added.

“It has been the most volatile year for the price of oil in over 20 years of tracking this.”