As we approach the summer of 2024, Canadian drivers are keen to understand what lies ahead in terms of automotive fuel prices. Let’s delve into the various factors that could influence fuel prices in Canada, including global politics, social trends, and economic factors. How is the gas price outlook for the summer of 2024 shaping up?
Global Politics and Fuel Prices
Global politics play a significant role in determining fuel prices. Geopolitical concerns have threatened crude oil supplies, leading to rising crude oil prices. Disruptions to cargo shipments and conflicts in the Middle East have lifted crude oil prices higher. Also, *OPEC+ has pledged to limit crude production until the end of Q2, further raising crude oil prices.
*OPEC+ is the Organization of Petroleum Exporting Countries and Allies
Social Trends Impacting Fuel Prices
Social trends also have a significant impact on fuel prices. For instance, shifting towards higher-end vehicle production and consumer preferences have supported light truck sales1. Despite the weight of higher rates and higher prices on consumers, labour market tightness has buttressed wage growth and kept pent-up demand solid.
Economic Factors Influencing Fuel Prices
Economic factors heavily influence fuel prices. Global supply and demand conditions primarily determine crude oil prices1. Global crude oil production is likely to outpace consumption for most of the following year, leading to an expected slight decline in crude oil prices. However, several factors change this, such as impacts to global economies, which will affect crude oil demand.
Gas Price Outlook for Summer 2024
Looking ahead to the summer of 2024 in Canada, gasoline prices are forecasted to peak in May and finish the year nearly eight cents per litre higher than at the end of 20232. This projection would mean a growing burden of fuel costs for Canadian drivers, potentially impacting commuting habits and overall household budgets2.
The outlook for automotive fuel prices in Canada for the summer of 2024 points towards a rise. However, the actual impact will depend on how these global political, social, and economic factors evolve over time. Stay tuned for more updates as we continue to monitor these trends closely.
Please note that these are long range projections. They are derived from various data and the actual experience will be affected by future events. It’s always a good idea to stay informed and keep an eye on the latest news and updates.
