Economist says oil-focused provinces could be squeezed if crude continues plunge

The Canadian Press ~ The News
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An economist says the economic fortunes of Canada's oil-producing provinces could take a hit if global crude prices continue spiralling downward as they have this month.
TD Bank's Derek Burleton says there are also concerns over the effects on Canada's natural resource-weighted stock market.
On Tuesday, the Toronto Stock Exchange's energy index dropped almost three per cent.
Oil prices have lost more than one fifth of their value in the past month, as jitters over Europe's economic health intensify.
The drop continued today, with the July contract on the New York Mercantile Exchange losing nearly two per cent to US$68.31 - nearly $20 below the price of crude at the beginning of May.
Burleton says economists had been pegging this year's crude prices at anywhere from US$75 to US$95 per barrel, but he wouldn't be surprised to see some downward revisions to their forecasts.

Organizations: TD Bank, Toronto Stock Exchange, New York Mercantile Exchange

Geographic location: Canada, Europe

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Recent comments

  • chris
    July 02, 2010 - 13:33

    So when are we going to see the price of Gas start to go down because it surely goes up when the price of oil goes up.

  • DB
    July 02, 2010 - 13:24

    I agree when will the rip off end

  • chris
    July 01, 2010 - 20:22

    So when are we going to see the price of Gas start to go down because it surely goes up when the price of oil goes up.

  • DB
    July 01, 2010 - 20:10

    I agree when will the rip off end