Canadians shouldn't expect any relief from high oil, gasoline and natural gas prices in the coming months, the National Energy Board says in its summer outlook.
Oil is expected to average $130 US a barrel through the summer, about where it's trading now. The NEB cites a tight oil market due to seasonal demand, geopolitical supply risks, low spare producing capacity, and the weakness of the U.S. dollar, which it said was attracting more money to commodities.
High oil prices will also keep gasoline near record levels, the NEB said.
"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.," he said.
Natural gas prices have more than doubled since last fall to the current level of $11.86 per million BTUs. The NEB is forecasting that natural gas prices will stay between $11 and $13 US this summer.
"This is due in part to record crude oil prices, lower liquefied natural gas (LNG) imports into North America, declines in Canadian production, a greater volume of gas needed to refill storage and the usual uncertainty of potentially hot summer weather," it said.
The agency said if natural gas prices rise "substantially," electricity prices could increase this summer, "particularly in regions that have natural gas fired electricity generation, including Ontario and Alberta."
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