Canada to release additional 140K barrels of oil per day starting in April
Global News
Canada produced on average 5.3 million barrels per day of crude oil in 2025, according to the Canada Energy Regulator, making the upcoming production jump a 2.6 per cent increase.
Canadian oil production is set to increase by 140,000 barrels per day starting in April, according to the Natural Resources Minister’s office, a part of the International Energy Agency’s (IEA) plan to increase oil supply impacted by the war in Iran.
On late Friday, Natural Resources Minister Tim Hodgson promised that Canada would contribute 23.6 million barrels as a part of the IEA’s plan to have oil-producing countries release an unprecedented 400 million barrels.
The Natural Resources Minister’s office told Global News the increase in Canada oil is not a part of any emergency production. Instead, the additional barrels will come from already planned increases to production from Alberta’s oil sands.
Canada produced on average 5.3 million barrels per day of crude oil in 2025, according to the Canada Energy Regulator, making the upcoming production jump a 2.6 per cent increase in Canadian supply.
Canada is the only G7 country that does not have emergency oil reserves but is not required to under IEA rules, due to being a net exporter of oil.
Global crude oil prices have fluctuated wildly since the United States and Israel started bombing Iran on Feb. 28. At one point, global crude prices briefly surged past US$120 per barrel, levels not see since Russia first invaded Ukraine four years ago.
Iran sits on the north side of the Strait of Hormuz, a strategically vital waterway that typically had 20 per cent of the world’s oil supply travel through it on a daily basis.
Those flows have all but vanished due to the war, with Iran having attacked some commercial vessels that attempted to travelling through the Strait of Hormuz and have likely started using underwater mines in the area, according to the United Kingdom’s defence minister.
Water treatment centres in the Persian Gulf region are under threat amid the Iran war, with desalination plants in areas like Bahrain taking damage from strikes.
John Gradek said that the price of jet fuel is up about 30 per cent and the cost of fuel represents about 30 per cent of an airline's operating costs.
Iran's unrelenting attacks on shipping traffic and energy infrastructure in the Persian Gulf pushed oil back above $100 a barrel on Thursday.
Concerns were raised in a document sent to British Prime Minster Keir Starmer in December 2024 when he was considering appointing Peter Mandelson.
Canada and a group of dozens of other countries have agreed to release 400 million barrels of oil from their strategic reserves as the Iran war threatens the global supply.
Iran's military command said on Wednesday the world should be prepared for oil to hit US$200 a barrel, as three more ships came under attack in the blockaded Gulf.
Iran launched new attacks against Israel and Gulf Arab countries, while Israel carried out airstrikes on Iran and Lebanon, where it is battling Hezbollah militants.
The department said it is also seeing fewer Canadians take government-assisted travel options as flights gradually resume in certain parts of the region.
The war has sent oil prices surging, upending global travel, pushing airline tickets on some routes sky-high, and sparking fears of a deep travel slump.
U.S. Defense Secretary Pete Hegseth said the United States would carry out the most intense day of strikes against Iran on Tuesday.
Trump said the war would continue until Iran is 'totally and decisively defeated' and predicted it would be over 'very soon,' but denied suggestions it could end this week.
G7 finance ministers said they were monitoring the situation and were prepared to implement 'necessary measures,' but stopped short of committing to release emergency reserves.
Canadian consumers are going to feel it in their wallets just about everywhere the longer the Iran war goes on, while some parts of the economy could see benefits.