Growing number of forecasts predict US$100 oil this fall

Delegates walks past an image of oil workers at the World Petroleum Congress in Calgary, Monday, Sept. 18, 2023.THE CANADIAN PRESS/Jeff McIntosh

CALGARY -

A growing number of forecasts are calling for the return of US$100 oil before the end of the year.

Andrew Botterill with Deloitte Canada says triple-digit crude prices this fall are a growing possibility due to surging global energy demand and decisions by Saudi Arabia and Russia to extend their recent oil production cuts to the end of the year.

If crude breaks the US$100 mark, it will put growing pressure on consumers at the gasoline pumps.

Higher energy prices will also make it more expensive for Canadians to heat their homes this winter.

A spike in fuel prices could also make it harder for the Bank of Canada to rein in inflation.

The price for benchmark crude West Texas Intermediate has jumped 30 per cent since June 1 and is hovering this week around US$90 per barrel.

This report by The Canadian Press was first published Sept. 20, 2023.