$100 Oil Still on the Horizon for Alberta Producers Amid Price Swings

Crude prices have been fluctuating wildly, swinging from $70 to $100 per barrel and back down to the high $80s in just two months. Alberta's major oil sands producers are sitting on their hands, waiting for regulatory promises to be put into writing and price stability to return.

The MOU pipeline option carries carbon sequestration costs that the Bridger proposed pipeline alternative does not, and producers are weighing these costs before committing capital. Additionally, price volatility is a significant deterrent, making it difficult for investors to make informed decisions.

EIR believes that crude prices should be at triple-digit levels given current OECD crude and product inventories, with WTI trading at $83.77 and Brent at $89.24 as of the time of writing. They estimate that crude is discounted by $10 to $15 relative to physical stock levels.