Calgary gas prices climb past $1.50/L as global oil markets react to Middle East tensions

The price of gas in Calgary sits at $1.50 — a massive jump from last week. The increase could spark positive changes for provincial finances.

Gas prices are climbing in Calgary as global oil markets react to escalating tensions in the Middle East.

Many stations across the city are now posting prices above $1.50 per litre, after crude oil surged on fears the conflict could disrupt supply from one of the world’s most important oil-producing regions.

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As of early Friday morning, the price of West Texas Intermediate was sitting around $85 US a barrel.

For Alberta, the sudden spike is a double-edged sword.

While higher oil prices often mean stronger revenues for producers and governments in the province, they also translate into higher pump prices for consumers and businesses.

The price jump is also putting renewed attention on how Alberta oil gets to market.

Calgary-based South Bow Corp. is holding an investor call Friday morning, during which executives are expected to discuss potential growth projects tied to the Keystone Pipeline System.

The company has launched what’s known as an “open season,” seeking long-term commitments from shippers interested in moving crude from Hardisty to delivery hubs in the United States.

Unlike the cancelled Keystone XL, the proposal would largely build on existing pipeline infrastructure.

The goal is to support expected production growth in the Western Canadian Sedimentary Basin and help move more Alberta crude to global markets during periods of volatile prices.