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Oil futures price drop could mean lower gas prices

VANCOUVER (NEWS1130) – We just might see gas prices fall later this summer.

Oil futures prices tumbled below $90 a barrel Wednesday following a rare announcement by the International Energy Agency. Agency members will release 60 million barrels of oil from strategic reserves in an effort to ease oil prices.

Analyst Michael Ervin says it’ll take weeks for this news to reach gas pumps. “That price being quoted is the price for August delivery of crude oil.”

“Futures markets tend to be very volatile — on a day-to-day basis, as traders basically react, in many cases, knee-jerk react — to day-to-day geo-political events,” he explains, noting there is no guarantee drivers will save any money this summer.

According to Gasbuddy.com, the price in Metro Vancouver is in the neighbourhood of $1.30/litre. The average has dropped a penny or two over the last month, but we’re paying 20 cents more per litre compared to this time last year.

Where in the world is the cheapest gas?

In some countries, gas is dirt cheap. MSN has compiled a list of the world’s lowest prices.

There are four countries, including Turkmenistan and Libya, where drivers can find gas under 20 cents a litre.

People pay as little as 12 cents a litre in Saudi Arabia these days. But the Saudis have nothing on Caracas, Venezuela, where you can get it for as little as two cents a litre.