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WTI briefly traded in negative prices in April as the market was hit by both the COVID-19 pandemic and a price war between Saudi and Russian sellers.
“Gasoline is not oil, and it trades quite differently and regionally, based on supply and demand,” said McTeague.
He said drivers across western Canada should focus more on the price of gasoline markets in Chicago, where Alberta trades.
Despite the rise in prices lately, McTeague said Edmontonians remain in a favourable place in terms of filling their tanks compared to other markets.
“There’s nothing normal about prices for gasoline at a retail level in Edmonton,” said McTeague. “Speak to any gas station owner, they’ll say that they ain’t making money selling gasoline.”
He said larger retailers such as superstores will even sell their gas at a loss to attract customers.
“Edmonton is probably the most competitive retail market, cutthroat market in all of Canada and I would argue is one of the most dynamic, cutthroat markets in all of North America,” said McTeague.
Read More: Gas prices increasing as price of oil remains below $50 a barrel
