The sharp drop in oil prices did not take long to be felt on the pump in the Sherbrooke region.
Since Wednesday morning, it has been possible to refuel for less than a dollar a liter.
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This is the case at the Costco point of sale, on the Saint-Joseph plateau, where 99 ¢ per liter of regular fuel is displayed for members of the banner.
We have to go back to 2016 to review such a prize in the Sherbrooke landscape.
We can expect a strong downward movement in the region. According to CAA-Quebec, the “realistic price” for the Eastern region is 96 ¢ per liter. The average price per liter is estimated to be $ 1.13.
In comparison, the “realistic price” of Montérégie is 98 ¢ and 95 ¢ in Center-du-Québec, it says.
“I do not recommend refueling unless the tank light turns on,” comments Pierre-Olivier Fortin, of CAA-Quebec. The price will drop throughout the market in the near term. ”
“How long can it last? Hard to say. There can be lots of factors that can influence the price, like a big storm, a conflict … ”
Recall that the decision of Saudi Arabia to adopt a policy drastically lowering the price of its oil has created a shock in the markets in recent days. The Saudis’ decision followed the breakdown of negotiations held last weekend with Russia on maintaining the price of black gold.
Monday, as the stock market panicked under the pressure of the global coronavirus crisis, the price of a barrel of “Brent” fell below $ 30. In early January, it was approaching $ 70. On the New York Stock Exchange, crude oil prices fell 97 cents US to $ 33.39 a barrel on Wednesday.
Remember that the gas point of sale at the Costco warehouse store opened at the end of January.
“The price of oil has never been lower since 2016,” said Fortin.
“There is currently an abundance of products on the market. The loading ramp price at the refinery is 49 ¢ per liter, or 85 ¢ with taxes. The cost of acquisition has dropped by 15 ¢ since the start of the week. ”