Ongoing global conflicts and maintenance activities at the largest oil refinery in Canada are contributing to the rising prices of certain fuels. Diesel and home heating oil costs surged recently, with Prince Edward Island experiencing a significant increase of about 16 cents per liter for both fuels in a single day. Ukrainian drones targeted two major Russian refineries as part of their sustained efforts to disrupt Russia’s oil and gas sector.
Patrick De Haan, the head of petroleum analysis at GasBuddy, explained that these attacks are impacting crucial refining capacity, leading to supply shortages and driving prices upward. The situation is further complicated by the maintenance work at the Irving Oil Refinery in Saint John, New Brunswick, which is expected to last until mid-November. While the maintenance will affect production, the exact impact on refining capacity remains unspecified, with some units operating normally during this period.
De Haan cautioned that diesel prices are likely to continue rising due to ongoing international developments, describing the situation as highly volatile. Recent events such as attacks in the Red Sea, on the Saudi East-West oil pipeline, the escalating tensions between Iran and the United States, and the drone strikes on Russian refineries are all significant factors affecting global oil supply. De Haan suggested that predicting fuel prices beyond the coming weeks is challenging given the complex and rapidly changing environment, advising consumers to budget for elevated fuel costs as escalations persist.