Oil prices dipped to just above US$134 on Monday afternoon as investors sold shares to reap rewards from last week's record high.
On Friday, oil prices reached US $139 per barrel for the first time. On Monday morning, barrels of crude were trading between US$135.27 and US$138.25.
Prices at the pump aren't likely to be affected by the price decrease for a couple more days, said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall, N.J.
"The numbers do have some catching up to do,'' Kloza said. "There's a bit of a tape delay that happens with gasoline.''
The average price at Canada's pumps on Monday was around C$1.35 a litre, according to price monitoring website GasBuddy.com.
Part of this week's price dip has been attributed to comments made by Saudi Arabia's oil minister, who said Sunday that he believes crude prices are unjustifiably high.
There was also word that shipments of Brent North Sea crude -- one of the benchmarks for setting prices -- were set to increase by 8 per cent daily next month, which could help reduce strain on supply.
On Friday, prices at the pump jumped roughly 10 cents per litre, the largest single-day jump ever, rising almost eight per cent, or US$11.
One day earlier the price per barrel jumped 5 per cent, or $5.50 per barrel -- amounting to a 13 per cent rise in two days -- a new record for the New York Mercantile Exchange.
Experts are predicting the retreat is a temporary one.
Though oil prices are high, inflation has remained relatively tame, unlike in the past when skyrocketing oil prices were linked to inflation and then to high interest rates.
Factors contributing to the high prices include strong Asian demand for at a time when production is remaining static, political instability in the Middle East and a slowing U.S. dollar are all contributing factors to the high gas prices.
TD Bank economist Craig Alexander said Monday that Canadians should brace for about $1.45 per litre as a national average this summer, with some Canadian cities seeing $1.50 over the summer, particularly on long weekends.
"But where we are today will dampen demand. We are seeing consumers start to respond but the reality is it probably won't drop off until the fall or into next year."
With files from the Associated Press
