Oil prices remain unstable

Oil prices were back up Monday, despite forecasts that we could see the price of crude drop to as little as $40 dollars a barrel. Today the January crude contract on the New York Mercantile Exchange rose $2.85 to $69 U.S. a barrel. But that small gain couldn’t stop the losses on the TSX, which fell more than 100 points for the third day in a row. However, the lower cost for oil should be good news for consumers, at least for now.

Late this afternoon, gas prices in the Hamilton area were among the lowest in the GTHA, sitting around the $1.04 mark.

These gas stations are in the Dundurn and King Street area heading to the 403.

And earlier today, prices in the Niagara region varied. We saw as little as $1.06 to a little more than $1.10 a litre.

Overall prices are expected to be lower Tuesday by as much as two cents.

Earlier, we talked about oil and gas prices with Marvin Ryder from the DeGroote School of Business. He says oil is closely connected to Canada’s economy: “What it means for the economy is that our Gross Domestic Product is highly dependent on the oil we pump out. If the price falls and we start taking less out of the ground, that’s going to see our GDP shrink. So what’s good news for the consumer on one hand, may be bad news for the policy makers on the other.”