The decision by OPEC member countries to quickly cut global oil production had an impact here, with several retailers in the Quebec and Montreal regions now displaying a liter at 174.9¢.
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That’s an increase of 15 cents a liter for a week, according to CAA Quebec data, which shows the average price last week in the province was 158.0¢.
An initial surge in recent days had taken the price to 164.4¢ in Quebec, but now retailers are dealing another big blow.
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popular assumption
If some have seen a connection with the long weekend ahead, the CAA-Quebec emphasizes that this is more of a common assumption.
“This is the result of chance. Prices are believed to increase ahead of the holiday period, but if we look at the building holiday this summer the price had come down,” said David Marcille, spokesman for the organisation, adding that the increase was generalised.
“It’s not specific to the province of Quebec, it’s a situation that we’re seeing almost everywhere in the world due to various factors. »
According to website essencequebec.com, which was updated by online users, a strong majority of Quebec City and Montreal-area retailers rose to 174.9¢ during Thursday, a sign of a solid trend everywhere.
That increase would not be exaggerated, however, according to figures from the CAA, which put the “realistic price” at the pump in the Capitale-Nationale region at 177.5¢, according to the margins of existing retailers.
For Montreal, the fair price would be 176.6 cents, according to the organization.
The average price in the province of Quebec is currently 166.3¢, while the national average is 169.8¢.
decline in production
The latest surge comes after the Organization of the Petroleum Exporting Countries (OPEC) ordered a significant cut in production quotas on Wednesday in response to the specter of recession hanging over western countries.
A minus of two million barrels per day was announced for the month of November and the price increase is directly related to it.
“Markets have been very nervous about this decision and the instability has increased the cost of purchasing oil, which is reflected in motorists’ bills,” explains David Marcille.
However, it is difficult to predict how long prices will remain high or if they can continue to rise.
“Hard to say, we don’t have a crystal ball and the calculation is very complex. Many factors contribute to the price and sometimes prices can even vary from one region to another in Quebec for X or Y reasons, so it’s difficult to predict,” the CAA spokesman said. -Quebec.
Oil was at $93.71 on Thursday morning when markets opened, rising after hitting a 2021 low of $83.93 in late September.
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OPEC and oil production
Photo: AFP
Members of the Organization of the Petroleum Exporting Countries (OPEC), including Saudi Energy Minister Abdulaziz bin Salman (pictured), met in Vienna, Austria on Wednesday.
- 13 countries members
- Production usually turns around 28 million barrels per day
- Discount this week off 2 million barrels per day
- The measure is intended to “stabilize prices”
- Price per barrel at Thursday market open: $93.71 American
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