The Current Trump’s comments ease oil prices, for now
Mar 10, 2026
Neil Shearing, Group Chief Economist at Capital Economics, offers macroeconomic perspective on trade, inflation, and rates. Heather Exner-Pirot, energy policy expert at the Macdonald-Laurier Institute, explains oil market mechanics and Canadian policy choices. They discuss oil price swings after recent comments, supply-route risks, impacts on air freight and fertilizer, and policy tools to ease consumer pain.
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How Global Oil Shocks Immediately Hit Canadian Pumps
- Global oil price moves translate to Canadian pump prices within days because barrels are reallocated to wherever refineries will pay more.
- Heather Exner-Pirot explains insurers stop covering Strait of Hormuz shipments, so disrupted supply quickly bids up crude and retail gasoline.
Plentiful Domestic Oil Doesn’t Shield Canadians From Price Spikes
- Even with ample Canadian supply, domestic prices rise because refineries compete for scarce barrels and pay the higher global price.
- Exports to US Gulf refineries and Trans Mountain destinations mean Canadian refineries must match those prices to get crude.
Cut Fuel Taxes To Ease Immediate Pain
- Governments can provide short-term relief by temporarily cutting fuel taxes or GST when prices stay high.
- Heather Exner-Pirot notes provinces cut fuel taxes after Russia invaded Ukraine and $2 per litre is a political tipping point.