Deloitte Report: Oil and Fuel Prices Expected to Stay High All Year
The ongoing conflict in the Middle East, particularly between Iran and the U.S., is expected to keep oil and fuel prices elevated throughout the year. According to a recent report released by Deloitte Canada, North American oil prices are projected to average $85 per barrel in 2026, a significant increase from the anticipated $67 per barrel in 2025.
Impact of Middle East Conflict on Oil Prices
Oil prices have seen an impressive rise of over 50% since the outbreak of hostilities in late February. On a recent Tuesday morning, West Texas Intermediate (WTI)—the benchmark for North American crude—was priced at more than $116 per barrel. However, prices exhibited some fluctuations following news of a temporary ceasefire agreement between the U.S. and Iran.
Expectations for the Coming Months
Andrew Botterill, an energy analyst with Deloitte Canada, highlighted the volatility of day-to-day oil prices. He anticipates that prices may decrease in the latter half of the year, despite the current high levels. “There is going to be a lot of pressure on all of our energy needs for this year,” Botterill noted in an interview with CBC News.
Fuel Prices Under Pressure
Consumers may face ongoing challenges as gasoline, diesel, and jet fuel prices remain elevated due to oil trading above $100 per barrel.
- Gasoline and diesel prices are currently rising.
- Natural gas prices in Canada have remained stable due to adequate supplies, unlike global trends.
Prime Minister Mark Carney has recognized the burden of high gas prices and is exploring measures to assist consumers. Meanwhile, reports from other firms, such as Sproule, align closely with Deloitte’s findings, predicting an average WTI price of $84 per barrel in 2026.
Natural Gas Market Overview
The natural gas market has experienced significant fluctuations globally, particularly over the past five weeks. Many countries are scrambling to secure adequate supplies for heating and energy needs. In Canada, however, the natural gas prices have remained unchanged, attributed to sufficient supply and storage capabilities. Botterill emphasized, “At the end of the day, we’re beholden to exporting a lot of natural gas into the U.S. They also have a lot of it as well.”
As we move forward, the combination of geopolitical factors and market dynamics will continue to influence both oil and fuel prices, highlighting the ongoing complexities within the energy sector.
