Abu Dhabi National co. announced it would increase oil production from 3 to 4 million barrels per day on Wednesday and Saudi Aramco will increase from 12 to 13 million barrels/day..The announcement didn’t have much of an effect on oil prices that have taken a hit over the past five days – in fact, West Texas Intermediate (WTI) was trading slightly higher at $33.49 mid-Wednesday morning than the $32.67 around the same time on Monday..Oil prices had begun the climb back up on Tuesday, gaining around 10 per cent before Wednesday’s announcements..“The oil price crash will do irreparable damage to the Canadian economy and stock market,” Ed Moya, a senior market analyst at Oanda Corp. in New York told Bloomberg on Monday..“Canadians will have to brace for lower prices for the foreseeable future and the oil sector will have to consolidate. Even when virus fears ease, the oil-dependent Canadian economy snapback rally will lag their peers.”.The price war – initiated by Saudi Aramco on Saturday and was seemingly aimed at Russia, who in turn had their sights set on U.S. shale – may not be going anywhere soon..Russia’s Finance Ministry said on Monday that the country could manage $25-$30/barrel prices for six to 10 years. Russian officials also pointed to the country’s wealth fund, which has around $150 billion, as additional security if prices remain low..The loonie also slipped to US$0.73 on Tuesday and is expected to continue to slide alongside oil prices until oil finds it’s floor price..Deirdre Mitchell-MacLean is a Senior Reporter with Western Standard.dmaclean@westernstandardonline.com.Twitter: @Mitchell_AB
Abu Dhabi National co. announced it would increase oil production from 3 to 4 million barrels per day on Wednesday and Saudi Aramco will increase from 12 to 13 million barrels/day..The announcement didn’t have much of an effect on oil prices that have taken a hit over the past five days – in fact, West Texas Intermediate (WTI) was trading slightly higher at $33.49 mid-Wednesday morning than the $32.67 around the same time on Monday..Oil prices had begun the climb back up on Tuesday, gaining around 10 per cent before Wednesday’s announcements..“The oil price crash will do irreparable damage to the Canadian economy and stock market,” Ed Moya, a senior market analyst at Oanda Corp. in New York told Bloomberg on Monday..“Canadians will have to brace for lower prices for the foreseeable future and the oil sector will have to consolidate. Even when virus fears ease, the oil-dependent Canadian economy snapback rally will lag their peers.”.The price war – initiated by Saudi Aramco on Saturday and was seemingly aimed at Russia, who in turn had their sights set on U.S. shale – may not be going anywhere soon..Russia’s Finance Ministry said on Monday that the country could manage $25-$30/barrel prices for six to 10 years. Russian officials also pointed to the country’s wealth fund, which has around $150 billion, as additional security if prices remain low..The loonie also slipped to US$0.73 on Tuesday and is expected to continue to slide alongside oil prices until oil finds it’s floor price..Deirdre Mitchell-MacLean is a Senior Reporter with Western Standard.dmaclean@westernstandardonline.com.Twitter: @Mitchell_AB
