FORT McMURRAY — Fuel prices are climbing again in northern Alberta as global oil market tensions continue to ripple through gasoline markets.
On Sunday, gasoline in Fort McMurray ranged from about 149.9 cents to 154.9 cents per litre at local stations.
The increase comes amid renewed volatility in global oil markets tied to escalating tensions involving Iran and military activity near Kharg Island, a key hub for the country’s oil exports.
Analysts say even the perception of risk around the Persian Gulf can push oil prices higher because the region is critical to global energy supply. Roughly one-fifth of the world’s oil shipments move through the nearby Strait of Hormuz, a major transit route for crude from Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Iran.
Any threat to shipping through the strait can quickly drive prices higher as traders factor in the possibility of supply disruptions.
Market analysts say insurance risks for tankers, potential military escalation and uncertainty around export flows from the Persian Gulf have already pushed oil markets higher in recent weeks.
Efforts by major economies to release oil from strategic reserves have done little to calm markets. Analysts say the releases are spread over time and add relatively small daily volumes compared with global demand, limiting their ability to offset geopolitical supply risks.
Rising diesel prices are also contributing to broader economic pressure because the fuel powers much of the global freight and logistics network.
Energy analysts say higher wholesale fuel costs can continue to move through the supply chain for days or weeks, meaning pump prices may keep rising even if crude prices stabilize.
The result is continued volatility at the pumps as one of the world’s most strategically important energy regions faces heightened geopolitical tensions.
SEO: Fuel prices rise in Fort McMurray amid Middle East oil market volatility
Comments