TORONTO – Experts at BMO say that as dramatic as the swing in energy prices has been, the global economy should be able to manage through current levels.
Chief economist Doug Porter says Canada has just seen the largest monthly gasoline price hike on record but that oil prices, when adjusted for inflation, are around where they largely hovered between 2005 and 2015.
Speaking at an online seminar put on by the bank, he said the speed of change is certainly a shock to the system, but that the North American economy is especially resilient to this.
Randy Ollenberger, managing director of oil and gas research at BMO Capital Markets, says current prices, however, reflect a perception that the conflict in the Middle East will be resolved in the near term.
He says the supply disruptions are large and unprecedented, but that the market is betting there will be a resumption of flows within the coming weeks.
Ollenberger says that even if the conflict is resolved, the risk premium on oil will remain higher to keep upward pressure on prices.
This report by The Canadian Press was first published April 1, 2026.