Calgary gas prices may see relief this week, but analysts warn of market uncertainty

Calgary drivers hope to see a break at the gas pump the next few days, but analysts warn factors like global reaction to the new COVID-19 variant could add to market uncertainty.

Reports from GasBuddy show the average price of gasoline hovering around $1.40per litre Monday morning inthe city.

Calgary resident Brent Gordon says he's been driving more ever since restrictions have eased, andhigh gas prices has sent him looking for cheaper pumps in the city.

"I make the effort because it does make a difference," he said, adding thathis family will often get gas at Costco.

CalgarianJoanne Finocchiarosays she inferences that high gas prices will impactgrocery prices as well.

"We're all gonna feel it," she said.

Omicron variant

The emergence of the new COVID-19 variant, called omicron, contributed to adecline in crude oil prices late last week.

And while Canadian health experts havecautionedagainst alarmover the new variant, investors thatfearthat it could knock the economic recovery off coursewere fast to emerge Fridayrattling markets broadly.

Patrick De Haan, the head of petroleum analysis at GasBuddy, says the variant could potentially causesome gasoline price relief, but adds its unclear how long that would last.

"You know there is a lot of turbulence in this market.In fact, probably the most turbulence and challenging time to accurately predict where we gosimply because so much of the future is going to ride on how governments respond to this new variant," he said.

• More strange days ahead for oil industry following Friday price plunge
• What we know about the new coronavirus variant omicron

"So certainly keeping that in mind, it's going to be a bumpy ride here over the next coming months."

The Organization of the PetroleumExporting Countries(OPEC) and its allies will meet this week and areexpected to discuss whether toadjustplansto increase output by 400,000 barrels per day in January and beyond.

De Haan says this discussion could have a heavy hand in the price of oil moving forward later this week.

"I think it would be a disappointment if OPEC does not increase production, and that could drive oil prices right back up. So what is shaping up for later today and tonight with a gas price decline across Canada coast to coast, and then Calgary, as well, may not be long lasting."