NEWS: Oil prices hit seven-year highs; US$100 oil possible this winter, experts say

Oil is shooting up in price, but drilling rig company’s phones aren’t yet ringing off the hook. Photo by Brian Zinchuk

CALGARY — Experts say the price of crude oil could hit US$100 per barrel this winter.

The return of travel and the easing of pandemic restrictions around the globe has sent demand for oil skyrocketing. Oil prices are already at seven-year highs.

The North American benchmark West Texas Intermediate price Monday hovered around US$78 per barrel. Experts say crude prices could spike even higher this winter, especially if a rebound in air travel drives up demand for jet fuel.

The last time oil was US$100 per barrel was in 2014. It spurred major expansion and growth in Canada’s energy sector.

But experts say the oilpatch is leaner now after years of low prices. They say the current spike in prices likely won’t mean a lot of new hiring or the announcement of new oilsands projects.

Adam Legge with the Business Council of Alberta says companies will likely take advantage of high prices to invest in emissions reductions technology instead.

This report by The Canadian Press was first published Oct. 4, 2021.

The Canadian Press

News from © The Canadian Press, 2021. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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