Oil Prices Peak Over $70 For First Time in Four Years

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Oil Prices Peak Over $70 For First Time in Four Years

The price of crude oil is hitting a four-year high.

U.S. West Texas Intermediate rose to above $70 a barrel on Monday – numbers that haven’t been seen since 2014.

Founder of Auspice Capital Tim Pickering tells Fort McMurray News there’s a number of contributing factors for the rise.

“People are pointing the finger at Iran – there’s a massive premium because of the Iran possible sanctions and I think that’s not the case.”

The economic crisis in Venezuela, OPEC cuts, as well as supply and demand are all parts.

Pickering says we haven’t fully protected ourselves for when these prices drop.

“There’s no hedging done by the government of Alberta or Canada like, for example, how Mexico does or how Norway runs their programs – that’s a concern to me.”

He says we’re also not benefitting to the degree we should be. Canada continues to have problems getting their product to market.

“We got the right stuff in Canada, we’re just not as a society benefitting as much as we should and that’s a shame.”

Pickering believes the price of oil will hit over $80 by the end of 2018 and possibly $100 in a couple years – as demand continues to be strong and grow.

With Files from Elizabeth Priest
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