{"id":586707,"date":"2026-04-06T22:10:08","date_gmt":"2026-04-06T22:10:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/586707\/"},"modified":"2026-04-06T22:10:08","modified_gmt":"2026-04-06T22:10:08","slug":"oil-price-the-world-needs-more-canadian-energy-eric-nuttall","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/586707\/","title":{"rendered":"Oil price: \u2018The world needs more Canadian energy:\u2019 Eric Nuttall"},"content":{"rendered":"<p>Eric Nuttall, partner &amp; senior portfolio manager at Ninepoint Partners, joins BNN Bloomberg to discuss the outlook on oil and energy. <\/p>\n<p class=\"c-paragraph\">The world is on the brink of a severe energy shortage the market has not yet reflected, says a leading expert in the oil and gas industry.<\/p>\n<p class=\"c-paragraph\">Right now, the world is facing an approximate <a href=\"https:\/\/www.bnnbloomberg.ca\/business\/2026\/03\/12\/world-faces-largest-ever-oil-supply-disruption-on-middle-east-war-iea-says\/\" target=\"_blank\" rel=\"nofollow noopener\" title=\"https:\/\/www.bnnbloomberg.ca\/business\/2026\/03\/12\/world-faces-largest-ever-oil-supply-disruption-on-middle-east-war-iea-says\/\">six million barrel-a-day supply shortage<\/a> due to the closure of the Strait of Hormuz amid the ongoing war in Iran, explains Eric Nuttall, senior portfolio manager at Ninepoint Partners.<\/p>\n<p class=\"c-paragraph\">The closure has trapped about 20 per cent of global supply, forcing major producers like Saudi Arabia to cut production by an estimated 11 million barrels per day. Emergency reserves have acted as a temporary buffer, but they are rapidly depleting, he says.<\/p>\n<p class=\"c-paragraph\">\u201cThis is the worst case scenario,\u201d says Nuttall.<\/p>\n<p class=\"c-paragraph\">\u201cSix million barrels per day is the biggest outage in the history of humanity.\u201d<\/p>\n<p class=\"c-paragraph\">He says once that buffer is gone, prices will need to rise to offset the supply loss.<\/p>\n<p class=\"c-paragraph\">\u201cWe\u2019re days away from parts of the world experiencing actual shortages,\u201d says Nuttall.<\/p>\n<p class=\"c-paragraph\">\u201cThe inevitability of that is a price spike in the oil price to restore balance, because balance has to be restored, and prices set off that one marginal barrel.\u201d<\/p>\n<p>Shortages won\u2019t end with a ceasefire<\/p>\n<p class=\"c-paragraph\">Even if the conflict in the Middle East resolves and the Strait of Hormuz reopens, shortages will not ease right away.<\/p>\n<p class=\"c-paragraph\">\u201cIt\u2019s inevitable that we\u2019re going meaningfully higher from here,\u201d says Nuttall.<\/p>\n<p class=\"c-paragraph\">It would take about 30 days for tankers to reach Asia for loading and another 30 days to return to destination ports, he says.<\/p>\n<p class=\"c-paragraph\">\u201cAnd the ongoing impact of that is to draw down global storage to not just critically low levels, but to no levels,\u201d says Nuttall.<\/p>\n<p class=\"c-paragraph\">\u201cThat\u2019s where we\u2019re heading in the coming days and weeks, and the complacency that the market currently has is going to imminently vapourize now.\u201d<\/p>\n<p class=\"c-paragraph\">He says Saudi Arabia\u2019s national oil company, Aramco, has tried to reroute supply, but those efforts only cover about four million barrels per day of what he describes as a roughly 22 million barrel per day problem.<\/p>\n<p class=\"c-paragraph\">\u201cWe\u2019re experiencing COVID inverted,\u201d says Nuttall.<\/p>\n<p class=\"c-paragraph\">\u201cAnd it\u2019s happened so quickly that the market just can\u2019t wrap its head around.\u201d<\/p>\n<p>Prices have to rise to cut demand<\/p>\n<p class=\"c-paragraph\">If supply stays constrained, prices will have to rise, he says.<\/p>\n<p class=\"c-paragraph\">\u201cTo restore balance, you must kill demand through higher price,\u201d says Nuttall.<\/p>\n<p class=\"c-paragraph\"><a href=\"https:\/\/www.bnnbloomberg.ca\/business\/2026\/04\/06\/oil-edges-up-in-choppy-trade-us-iran-receive-ceasefire-proposal-framework\/\" target=\"_blank\" rel=\"nofollow noopener\" title=\"https:\/\/www.bnnbloomberg.ca\/business\/2026\/04\/06\/oil-edges-up-in-choppy-trade-us-iran-receive-ceasefire-proposal-framework\/\">Oil prices slightly increased Monday. Brent crude rose to US$109.13 a barrel, while U.S. West Texas Intermediate (WTI) climbed to US$112.31 a barrel.<\/a><\/p>\n<p class=\"c-paragraph\">Nuttall estimates the global economy starts to break once oil reaches about $177 per barrel, when roughly 5.5 per cent of global GDP is spent on oil.<\/p>\n<p class=\"c-paragraph\">\u201cIt\u2019s very common for the market to overshoot,\u201d he says, pointing to negative oil prices during the pandemic.<\/p>\n<p class=\"c-paragraph\">He adds energy stocks may not move in line with crude in the short term.<\/p>\n<p class=\"c-paragraph\">\u201cFor energy investors, you really want to avoid the day to day, hour, minute to minute volatility,\u201d says Nuttall.<\/p>\n<p class=\"c-paragraph\">He expects a longer-term shift, with low inventories and a $10 to $20 political risk premium keeping prices higher than forecasts suggest.<\/p>\n<p class=\"c-paragraph\">\u201cWe think that an $80 oil price next year is very, very reasonable,\u201d says Nuttall.<\/p>\n<p class=\"c-paragraph\">\u201cWe only have 10 holdings now in the Ninepoint Energy Fund, it\u2019s all Canadian oil names with deep, deep inventory. We see meaningful upside. On average, we would see 50 to 95 per cent upside at a $80 oil price.\u201d<\/p>\n<p>Canada could benefit<\/p>\n<p class=\"c-paragraph\">The threat of disruptions to key shipping routes like the Strait of Hormuz is also putting more focus on secure supply, including Canada.<\/p>\n<p class=\"c-paragraph\">\u201cThose countries that have deep inventories of adequate egress, they\u2019re really, really going to command a premium,\u201d says Nuttall.<\/p>\n<p class=\"c-paragraph\">\u201cIt\u2019s really Canada\u2019s time to shine\u2026 the world needs more Canadian energy.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Eric Nuttall, partner &amp; senior portfolio manager at Ninepoint Partners, joins BNN Bloomberg to discuss the outlook on&hellip;\n","protected":false},"author":2,"featured_media":586708,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-586707","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/586707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=586707"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/586707\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/586708"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=586707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=586707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=586707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}