FORT McMURRAY, — A sudden disruption to oil shipments through one of the world’s most critical energy chokepoints is pushing fuel prices higher globally, with early impacts already visible at the pumps across Canada.
Gas price analyst Patrick De Haan says the Strait of Hormuz, a narrow shipping lane between Iran and Oman that carries roughly 20 to 25 million barrels of oil per day, has become a key factor driving market volatility after tanker traffic was disrupted. The waterway normally moves nearly one-fifth of the world’s oil supply. When shipments stop or slow, global supply tightens and prices rise worldwide.
Because oil is traded on a global market, even countries that produce large amounts of crude, including Canada, feel the impact when supply elsewhere is threatened.
The national average gasoline price in Canada recently sat around 134.2 cents per litre, according to industry tracking data.
Prices in northern Alberta are already higher than that average.
In Fort McMurray, drivers are paying between about 139.9 cents per litre in the Thickwood area and roughly 149.9 cents per litre in Timberlea. Diesel prices locally are hovering near 190 cents per litre.
Elsewhere in the province, prices in Edmonton range from about 128.9 to 135.8 cents per litre, while motorists in Vancouver are paying roughly 178.9 cents per litre on average.
De Haan says the current price pressure is being driven primarily by fears surrounding shipping disruptions in the Strait of Hormuz.
If tankers cannot safely move through the passage, oil cannot reach global markets, tightening supply and pushing prices higher.
The surge has been particularly sharp for diesel fuel, which is widely used by trucking companies, farmers and construction industries. Distillate fuels such as diesel and heating oil were already in tight supply after colder weather increased demand earlier this winter, analysts say.
The speed of the increase has also drawn attention in energy markets, with diesel prices rising unusually quickly compared with gasoline.
De Haan says the direction of prices in the coming weeks will depend largely on whether shipping traffic resumes through the Strait of Hormuz.
If tanker traffic begins moving again, fuel markets could stabilize. If disruptions continue, prices for gasoline, diesel and jet fuel could climb further around the world.
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