After some Metro Vancouver gas prices reached heights around $2.30 per litre Wednesday, experts say relief is coming.
Roger McKnight, chief petroleum analyst at EnPro, tells 1130 NewsRadio he expects prices in the region to drop by around seven cents per litre overnight.
He explains that his estimations are based on wholesale price changes, and final changes are up to the individual retailer.
Gas prices have been increasing around the globe since the onset of the U.S. and Israel’s attacks on Iran and disruptions to traffic in the Strait of Hormuz, curtailing the flow of millions of barrels of crude each day.
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Hope that the two-month conflict could soon be over buoyed international markets Thursday, a day after the U.S. military fired on an Iranian oil tanker attempting to breach the American blockade of Iran’s ports. The developments followed days of mixed messages from the Trump administration over its strategy to end the war.
On Thursday, Iran said it was reviewing the latest American proposals to end the war after U.S. President Donald Trump threatened the country with a new wave of bombing unless a deal is reached that includes reopening the Strait to international shipping.
McKnight says news of the potential peace deal has taken effect on the wholesale market.
“We’ve heard this song before, but grab any optimism you can,” he said.
As of Thursday morning, gas stations in the Vancouver area were advertising a litre of regular gas at prices ranging from $2.17 to $2.28.
—With files from The Associated Press and Sonia Aslam