Oil prices could hit US$100 a barrel this year, industry experts say

Click to play video: 'Expect to pay more for gas as oil prices surge'
Expect to pay more for gas as oil prices surge
Gas prices were already rising in Edmonton with the federal carbon tax kicking in over the weekend and now, rising oil prices are expected to keep pushing it up. Lisa MacGregor reports. – Apr 3, 2023

Industry experts say oil prices could return to US$100 a barrel later this year, giving a significant boost to Canada’s energy sector.

A surprise production cut of more than a million barrels per day unexpectedly announced by the Organization of Petroleum Exporting Countries and its allies (OPEC plus) on Sunday sent oil futures surging.

The price for North American crude benchmark West Texas Intermediate (WTI) rose above US$80 for the first time since January.

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Oil prices fell to mid-$60 range in March, due to concerns over bank failures south of the border.

But Randy Ollenberger of BMO Capital Markets says he expects global demand to pick up, meaning the OPEC cut could help push crude back to triple-digit territory.

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Energy executives say the OPEC announcement is contributing to what they say is a “buoyant mood” at a major oil and gas conference taking place in Toronto this week.

Click to play video: 'Global News Morning Market and Business Report – March 29, 2023'
Global News Morning Market and Business Report – March 29, 2023

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