Oil is purchased by refineries, petrochemical producers, and other consumers both directly and through groups of producers or marketing companies.

Factors such as global supply and demand, weather events, and geopolitical developments determine oil prices.

The price of crude oil has soared to record levels in recent years, smashing through the US$70-per-barrel mark, in large part due to rapid economic growth in developing countries, such as China and India, and political instability in oil-producing regions, such as the Middle East.

Canadian natural gas prices are mostly influenced by North American supply and demand forces. Because natural gas is difficult and expensive to transport outside of a pipeline, there is little global movement in gas, other than a relatively small quantity of liquid natural gas moved by huge ships. Therefore, gas prices are shaped largely by factors that occur on this continent, such as a cold snap in eastern Canada and the U.S., which drives up heating demand, or hurricanes in the Gulf Coast, which can affect the gas supply from large offshore wells.

The ERCB does not regulate prices of oil, natural gas, or any end products or by-products.

For more information on oil and gas markets, visit the Canadian Centre for Energy.