Canada’s oil production will rise by 140,000 barrels a day starting in April, according to the Office of the Minister of Natural Resources, part of the International Energy Agency’s (IEA) plan to boost oil supplies affected by the war in Iran.
Late on Friday, Natural Resources Minister Tim Hodgson promised Canada would provide 23.6 million barrels as part of the IEA’s plan for oil-producing countries to release an unprecedented 400 million barrels.
The Office of the Minister of Natural Resources told Global News that Canada’s increase in oil is not part of any emergency production. Instead, the additional barrels will come from already planned increases in production from Alberta’s oil sands.
Canada will produce an average of 5.3 million barrels of crude oil per day in 2025, according to the Canadian Energy Regulator, with the upcoming production representing a 2.6 percent increase in Canadian supply.
Canada is the only G7 country that does not have emergency oil reserves but is not required under IEA rules as it is a net exporter of oil.
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Global crude oil prices have fluctuated wildly since the United States and Israel began bombing Iran on February 28. At one point, global crude oil prices briefly crossed US$120 per barrel, a level not seen since Russia first invaded Ukraine four years ago.
Iran is located in the northern part of the Strait of Hormuz, a strategically important waterway through which 20 percent of the world’s oil supplies normally travel on a daily basis.
Those flows have disappeared because of the war, in which Iran has attacked some commercial ships trying to travel through the Strait of Hormuz and has begun using underwater mines in the area, the United Kingdom’s defense minister said.
-With files from the Canadian Press
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(tags to translate)Iran
