As the novel coronavirus continues to spread around the world, several countries have imposed strict quarantine measures, including limiting travel, causing a drop in the demand for oil.
Monday morning, the New York Stock Exchange and the Toronto Stock Exchange temporarily paused trading after the plummeting oil prices caused stocks to plunge at the market open.
How will this affect gas prices in Canada and how long will this last?
Here’s what experts say.
What’s going on?
Allison Mac, a petroleum analyst at GasBuddy, said as the outbreak continues, demand for oil across the globe has dropped.
“When you’re seeing a country like China, which is the second in demand for oil, basically locked down, there’s not a lot of gasoline being used in that country,” she said. “And because of that, there’s really no need for the oil.”
Allison said due to the decrease in demand, gas prices began to “trickle down” in mid-February.
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