Sep 29, 2016

By Jane Brown

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OPEC nations have reached a preliminary agreement to curb oil production to boost prices for the first time in eight years.

And there’s speculation this could lead to some dramatic hikes at the gas pumps. Canada’s gas guru Dan McTeague expects prices will rise 3 cents a litre tomorrow here in Toronto and as much as 13 cents a litre in Calgary.

The OPEC deal reached at a meeting in Algeria late yesterday will limit output to 32.5-million barrels per day, compared to today’s estimates of 33.2-million.

“This deal means a lot for a whole lot of different players,” explained our financial analyst Kim Parlee of TD Wealth, “oil prices go up and all companies that sell oil benefit, but the question is, what are the mechanics of it, what do individual countries have to stop producing, and will they stick to it, and this is one of the things you have think about with OPEC.”

Energy companies led a rally in Asian stock markets today as investors welcomed the news. European markets are also on the rise.

On the North American markets yesterday, energy stocks had their biggest one-day gain since January after the price of benchmark U-S crude jumped more than 5 per cent to settle at $47.05 U.S. per barrel.

Crude oil is down 11 cents this morning to $46.94 U.S. a barrel in electronic trading on the New York Mercantile Exchange.

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