Poll: Current price of oil is not justified

Canada’s business leaders believe the current price of oil is not justified, but argue the situation is in much better shape compared to the oil crisis in the mid-to-late 1970s.

In a Web-based survey, 57% of respondents said the oil situation is better now than 30 years ago, while 35% of those polled believe the situation is worse, according to a survey conducted for the Financial Post by COMPAS Inc.


The first wave of the oil crisis happened in October, 1973, when the Arab members of the Organization of the Petroleum Exporting Countries, along with Egypt and Syria, suspended oil shipments to countries which supported Israel in the Yom Yippur War. The price of a barrel of oil quadrupled within a few months. The second energy crisis hit in 1979 when Ayatollah Khomeini gained control of Iran. Oil prices climbed about 150% in one year.

While oil prices rattle around on todays tensions in the Middle East, the effects have not been as pronounced. A barrel of oil on Friday cost US$61.93, down from US$69.77 a year ago. That is an 11% decrease.

Financial Post