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.
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.
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.