Gas Prices To Be Reset Early, Increase Expected
Provincial regulators plan to use the interrupter clause to change gas prices overnight, and reports suggest that the adjustment will involve a significant increase. The Utility and Review Board announced today that it would invoke the clause, which occurs when market prices differ by six to eight cents a litre above or below the weekly price change. The impending change will come after today’s surge in crude oil futures and a rebound in oil prices over the past few days. In London, Brent crude for March delivery went up by three and a half percent earlier today, while in New York, light, sweet crude for March delivery went up by 3%. Oil prices have gone up about 10% over the last two sessions—something that’s being attributed to expectations that supply will go down with a major decrease in drilling activity in the US. However, Citigroup futures analyst Tim Evans tells Market Watch that the latest rebound might not be enough to offset a projected 1.5 million barrel per day surplus in the first half of this year.