Prices at the pump will continue to rise after the attack in Saudi Arabia

Canadians could see gasoline prices rise by 5 to 12 cents per liter in the coming days as oil prices rise after an attack that hit oil facilities in Saudi Arabia badly, according to an analysis. carried out by a price monitoring body.

“his is mainly due to the instability of the markets that react to events,” says Allison Mac, an analyst at Gasbuddy.com.

Uncertain duration

Petroleum market analysts surveyed, however, expect a longer crisis. Scotiabank commodities economist Rory Johnston said Saudi Arabia’s production should be drastically reduced for another four to six weeks, pushing up oil prices.

After returning to normal production, he predicts that a risk premium of at least $ 5 will add to the recent barrel price for at least a few months.

This premium may be around for a while, says Richard Masson, a research associate at the School of Public Policy at the University of Calgary.

If people are worried about an escalation to an open war, attacks on oil tankers or other oil fields, then the risk premium will stay in place for a while.

Richard Masson, Research Associate, School of Public Policy, University of Calgary
Bargain for Canadian Oil

Bad news for consumers could be a boon for Canadian oil producers, whose selling prices are rising with international prices.

Western Canadian WCS oil prices are expected to rise by 5 to 10 percent, Rory Johnston said. This is very good news for Canadian producers who earn more money on each barrel , says Richard Masson.

As oil companies’ incomes rise, the tax revenues of the producing provinces will also benefit from this crisis.

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