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Varcoe: Canadian producers lock in higher oil prices but keep spending plans unchanged amid Iran conflict

'These are very volatile events right now, shaping the price. So we're just locking it in — and if it goes higher, I'll lock in some more'

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Oil prices jumped Tuesday as the war in the Middle East disrupted shipping in the pivotal Strait of Hormuz, pushing crude prices above US$74 a barrel.

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Canadian oil producers, however, aren’t suddenly rushing out with plans to spend additional revenue.

But they’re not sitting on their hands, either.

“About a month-and-a-half ago, with $55 (oil), we were like ‘batten the hatches, tighten the belts,’ all that stuff. And now, with $77 that it hit this morning, (at) Surge, we’re hedging,” Paul Colborne, CEO of Calgary-based producer........

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