Canadian oil made a almost 50% move today

Canadian oil made a almost 50% move today

Notley has ordered a mandatory 8.7 per cent cut in oil production to reduce a glut of Alberta oil that is forcing steep price discounts.

There is another step that the provincial government should take to ensure that Albertans get a fair price for their resources now and in the long run.

"We have a responsibility to act".

Dave is joined by Calgary Herald business columnist Chris Varcoe.

It costs about $22 to ship crude via rail from Alberta to the Gulf, market sources told Reuters.

Likewise, I support the premier's decision to purchase more locomotives and rail cars to get our product to market.

"Government intervention is never the preferred route, but because of the crisis that's taken place in Alberta and Canada, we can understand that this is the route taken", Fagerheim said. Bloomberg reported that the benchmark for heavy oil, Western Canadian Select, jumped to $43.40 (CAD) a barrel, from $14.48.

Notley expects the production cuts to boost prices for WCS by roughly $4 per barrel, adding $1.1 billion to government revenue between 2019 and 2020. Alberta said it will monitor the market closely and reductions will be adjusted accordingly as storage is drawn down or new transport capacity comes online.

The leader of the Opposition UCP in the province, Jason Kenney, said the feeling of alienation shouldn't be understated. That's on top of mounting concern that the country's regulatory framework makes it very hard to get much-needed pipeline projects approved.

Alberta premier announces 8.7 per cent oil production cut to increase prices

The Canadian Dollar rose broadly Monday as oil prices recovered from 2018 lows but developments in the domestic market have just dented the growth outlook and could have negative consequences for the currency over the coming months.

The mandated cut ends on December 31, 2019.

Alberta Energy Minister Marg McCuaig-Boyd said they've also talked to Saskatchewan about the cuts and are working together to resolve the price quandary.

Canadian heavy crude strengthened the most since June after the Alberta government mandated production cuts across the province. As I've said these past few weeks, the market has been temporarily broken by pipeline policy failures that have left Canada without enough takeaway capacity for its growing oil production.

Similarly, while oilsands giants like Cenovus Energy Inc. and Canadian Natural Resources Ltd. will likely be happier, it's far from clear whether this will translate into anything that helps the NDP's political circumstances.

Alberta's government on Sunday announced a 325,000 barrel per day production cut due to massive bottlenecks in pipelines heading to the United States.

The Canadian Association of Petroleum Producers (CAPP) says this action by the province emphasizes an absolutely dire situation the energy industry is in. WCS's discount to futures fell to $50 a barrel in October amid refinery maintenance in the U.S. Midwest.

Alberta has the legal authority to mandate the cuts because mineral rights are owned by the province. The discount shank to as much as $19.75 a barrel earlier in the day, the tightest since July.

Christopher Sands, director of the Johns Hopkins University Center for Canadian Studies in Washington, D.C., also does not believe Alberta has opened itself up to either trade or diplomatic problems.

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