Gas prices in Edmonton reached a record high Thursday, finally surpassing the previous high set when Hurricane Katrina pummelled a number of American refineries back in 2005.
Motorists were greeted to prices close to the $1.29 mark at local pumps Thursday afternoon, causing some people to complain about the sky-high prices.
"It's getting pretty crazy," driver Chris Tsubone said. "When it's starting to take about $50 to fill up my tank, it's starting to get a little crazy."
Others said they weren't surprised, saying the writing has been on the wall for quite some time.
"Well I've been reading about it all the time so I guess it's coming," Ken Berg said.
The previous record in Edmonton was $1.259, set back in August 2005.
Meanwhile across Canada, oil prices fluctuated after setting a new overnight trading record of US$135.09, leading to concerns that falling supply and skyrocketing demand will push prices into uncharted territory in days and weeks to come.
The International Energy Agency, one of the world's leading global energy monitors, said Thursday it believes demand for oil could soon outpace supply.
The agency is currently working on its first ever oil supply study, monitoring depletion rates in about 400 oil fields, chief economist Fatih Birol told the Associated Press.
"We are entering a new world energy order," Birol told AP.
The agency is considered by many industry analysts to be the most reliable source of independent oil information in the world.
Its forecasts are closely monitored by major traders and its current gloomy outlook will likely impact the market, which has seen oil price records on a near-daily basis in recent months.
Between the end of trading on Wednesday and Thursday morning's opening, oil prices the New York Mercantile Exchange briefly rose to US$135.09 per barrel in electronic trading. The price eventually settled at US$132.04.
One year ago, barrels of oil were trading at about US$65.
The falling U.S. dollar has also been cited as a factor in rising oil prices. On Thursday, the U.S. dollar strengthened against the euro, making oil slightly more expensive to investors from overseas.
Strong demand for diesel in China, where power plants are running short of coal after last week's earthquake, is also playing into the demand for crude.
Calgary-based Husky Energy Inc. announced it expects to make a record profit this year due to the rising prices.
So far in 2008, first-quarter net income rose 36 per cent to $887 million from a year earlier, the company announced.
In addition to rising prices at filling stations, air travellers are also beginning to feel the effects of the higher costs.
Air Canada and WestJet Airlines both added fuel surcharges to the per-ticket price earlier this month.
And American Airlines announced it will charge $15 for each piece of checked baggage, starting in mid-June.
With files from The Associated Press
