Scotiabank commodity market specialist
"Of course on the positive side, it really bolsters earnings for
On the downside, crude is a big factor in gasoline prices. So the higher it goes, the more consumers are pinched.
"But I would guess that the positive impact on earnings and also on our merchandise trade performance would offset the negative impact on consumers of higher gasoline prices," said Mohr.
The long-term outlook for oil is little changed, he said.
"In general, when we have a higher risk of conflict in that region of the world, it tends to put an additional premium on oil prices," he said.
"It's not really related to the underlying fundamentals of oil right now, which are still very strong, but wouldn't have supported the
"So in reality, the status quo hasn't changed. This is just an additional risk premium that results in a flow of financial benefit, but not necessarily an impact on the real Canadian economy."
A rise in oil prices also tends to drive up the Canadian dollar, which can be a drag on exporters.
"Exports were incredibly weak in the first quarter, so it's really not the best time to see this," said Crawford.
"And of course it has a roundabout impact on our monetary policy. We're sort of out of room to cut our interest rates any more. So there's no monetary policy that can lessen the impact of higher oil prices on our Canadian dollar if there is a goal to keep the Canadian dollar trading at around
Oil prices have climbed to 10-month highs in recent weeks amid rising sectarian tensions in
West Texas Intermediate oil for August delivery, the main North American benchmark, was trading at around
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