The price of West Texas Intermediate climbed to more than US$92 a barrel on Friday as hostilities in the Gulf continued to cut energy exports from the region. The surge marked the highest oil price since August 2022. (The Logic)

Talking point: The price jump is similar to the one that followed Russia’s invasion of Ukraine in 2022, though oil prices were higher to begin with at the time. The price shock will give Canadian crude producers a revenue boost, said Charles St.-Arnaud, chief economist at Alberta-based Servus Credit Union, though most of their stocks haven’t surged with the price of oil. Increased energy costs are likely to be a net negative for Canada’s economy, said St-Arnaud, since companies are unlikely to reinvest the short-term gains. In the meantime, fuel costs will put pressure on inflation and drive up costs for the rest of the country, he said.