Oil and fuel prices are expected to remain high throughout 2026, according to a Deloitte report, with the ongoing conflict between Iran and the U.S. being a key factor. This situation has led to a surge in oil prices, with North American oil prices averaging $85 per barrel in 2026, up from $67 in 2025. The conflict has also caused transit disruptions through the Strait of Hormuz, cutting off a significant portion of the world's oil and natural gas supply.
The impact of this crisis is far-reaching, affecting not only oil prices but also gasoline, diesel, and jet fuel prices. The volatile nature of oil prices, as noted by Deloitte's energy analyst Andrew Botterill, means that consumers will face continued pressure on their energy needs. The federal government, as mentioned by Prime Minister Mark Carney, is aware of the high gas prices and is exploring ways to mitigate the impact.
Interestingly, natural gas prices in Canada have remained stable despite the global spike. This stability can be attributed to Canada's ample supply and adequate storage levels, ensuring that the country can meet its energy demands. However, Canada's reliance on exporting natural gas to the U.S. means that the country is still subject to the global energy crisis, albeit to a lesser extent.
The Deloitte report aligns with projections from other firms, such as Sproule, which anticipates similar oil price averages. This consensus highlights the complex and interconnected nature of the global energy market, where regional and international factors influence prices and supply.
In conclusion, the Deloitte report underscores the ongoing challenges posed by the Iran-U.S. conflict to the global energy market. While Canada may be relatively protected from some of the worst impacts, the country is not immune to the broader economic and social consequences of high oil and fuel prices. As the world grapples with this crisis, the need for sustainable energy solutions and strategic energy management becomes increasingly apparent.
