Crude Exports: Canadian Oil and Export Markets

crude exports: The Canadian oil and gas sector is in a holding pattern in which spending and production growth can't occur until new ways to get products to export markets are found, according to CIBC analyst Jon Morrison, according to The Toronto Star. Larry Mac Dougal / The Canadian Press The price of Western Canada Select, or WCS, a local blend that represents about half the country's crude exports, has plummeted even as global benchmarks such as West Texas Intermediate have risen. The industry is less critical than it once was to the nation's prospects, enabling some Canadian dollar bulls to look past the recent slide in domestic crude prices and focus instead on the outlook for economic growth and the prospect of higher interest rates. Yet analysts continue to predict gains for the loonie, with the median forecast in a Bloomberg survey showing it appreciating to C 1.25 per dollar by the end of next year from current levels around 1.30. While the price of WCS is trading close to its widest discount to WTI on record, the world's 11th largest economy is running near its potential and the unemployment rate has fallen to around 5.9 per cent as other sectors such as technology boom. Good economic conditions in Canada are leading toward ongoing tightening by the Bank of Canada, said Greg Anderson, head of foreign-exchange strategy at Bank of Montreal, who expects the Canadian dollar to strengthen to about 1.27 over the next three months. (news.financializer.com). As reported in the news.

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