Posted October 12, 2018 08:23:23The price of crude oil has soared to a new record as demand for heavy goods and services continues to grow.
The price for a barrel of Brent crude hit $75 a barrel in the first three months of 2018, up from $43 last year, the Canada West Oil Sands Association (CWOSA) said Thursday in its latest update on the price of oil.
“We are witnessing the largest expansion in crude oil prices in a decade,” said Dave Stewart, vice-president and general manager of CWOSA.
“It is now the highest ever.”
Warm weather conditions are expected to persist into next week as well as next week into next month, the CWOSD said.
The forecasted surge in demand is a boon to the Canadian economy as it boosts gross domestic product (GDP) by about 3 per cent this year, according to a recent report from BMO Capital Markets.
The number of workers employed in the oil and gas sector will increase by 7,500 this year and by 2,500 next year, it said.
Wages in the industry rose by about 4 per cent last year.
Wage growth is also expected to continue in the oilsands as production and investment in equipment continues to ramp up, Stewart said.
“It’s an incredibly healthy industry,” he said.
“This is a good time to be in it.”
Brent crude is a refined product of oil sands crude and the main ingredient in natural gas liquids.
The price has also been bolstered by higher oil prices that have led to a boom in the production of heavy goods such as trucks, buses and heavy equipment.
The Canadian Association of Petroleum Producers (CAPP) estimates the cost of crude in the U.S. has increased by $11 per barrel since 2009, according in a report released in February.
That’s compared with a 10-year average price of $55 per barrel.