Price of gas to tumble as much as 11 cents in Ontario: Dan McTeague

Oil prices suffered steepest loss since early days of the pandemic

A new COVID variant will impact how much we pay for gas, at least for now.

Dan McTeague, president of Canadians for Affordable Energy, tweeted that gas prices will drop 11 cents across Ontario on Sunday.

If you can, McTeague recommends holding off on topping up the tank until then.

The dip comes after oil prices suffered one of the largest ever one-day plunges on Friday, crashing more than 11 per cent as a new COVID strain sparked fears that renewed lockdowns could impact global demand.

On Wall Street, the Dow fell more than 1,000 points on Friday before a slight recovery to close down 905 points.

The price plunge happened as the World Health Organization (WHO) declared the new COVID-19 variant, called Omicron, to be “of concern.”

Early evidence suggests Omicron has an increased re-infection risk, the World Health Organization said.

Several countries including the US and UK recently agreed to release millions of barrels of oil from their strategic reserves to help ease supply concerns.

The discovery of a new variant could impact a meeting set for next week between the OPEC oil cartel and its allies, where the topic was supposed to be whether to adjust the proposal to increase output by 400,000 barrels a day in January and beyond.