Energy analyst predicts 7% to 10% rise in fuel prices for 1999
OSHAWA, Ont. — The good times won’t last forever.
En-Pro International, an Oshawa, Ont.-based energy analyst, predicts price increases on diesel and other finished crude products by 3 to 4 cents per litre in 1999, about 7% to 10%.
La Nina weather conditions are expected to create an unusually cold winter, especially in eastern Canada, which would place heavy demands on heating oil stocks and inflate the value of crude.
Other reasons include uncertainty caused by civil unrest in Nigeria, Africa’s largest crude producer; the inflated U.S. dollar against other world currencies, making U.S. crude more expensive to buy; and decisions by several key oil-producing countries to curtail production.
The troubled Asian economy and the unusually warm weather caused by El Nino greatly reduced demand for fuel oil in 1998, causing prices of finished products like diesel fuel and heating oil to fall by amounts greater than crude oil prices would otherwise justify, the company said.
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