Calgary, Alberta – Oil and gas prices are not expected to get any lower in the coming months, according to the National Energy Board’s (NEB) summer outlook for Canada’s energy markets. The outlook provides a market overview of oil, natural gas and electricity.
According to the report, the price of crude oil is not likely to ease throughout the summer, and will average in the area of US$130 per barrel. NEB said that some of the main reasons include seasonal demand increases, geopolitical risks to supply, low spare producing capacity, and the weakness of the U.S. dollar, which is resulting in more investment money flowing into commodities such as oil. Gasoline prices will also remain high and continue to reflect changes in the price of crude oil.
“Global oil prices continue to rise,” said NEB chair Gaétan Caron. “What happens in world crude oil markets this summer will largely determine the price of gasoline in both Canada and the U.S.”
The report also said that natural gas prices are expected to remain between US$11 and $13 per million British thermal units (MMBtu) this summer; rising natural gas prices could also affect electricity prices this summer, particularly in regions that use natural gas to generate electricity, including Ontario and Alberta.