Optics Over Substance at G-20 | Alberta to Reduce Oil Production by 8.7%
Published December 3, 2018
The loonie has strengthened against the greenback as the pair trades below a 1.3200 handle. This comes as Alberta ordered extreme output reductions to combat the unfolding crisis in Canada’s energy industry. The reduced production of raw crude from Alberta will remove 325,000 barrels a day (8.7%).
The trade war has been put on hold. Trump and Xi Jinping agreed to a 90-day truce at the G-20 in Argentina, despite precise details of the arrangement being undisclosed. The president went on to tweet that China has agreed to remove tariffs on imported automobiles from America, although China has not yet confirmed this pact.
The volatility in oil is set to continue this week as OPEC prepares for its Summit in Vienna. Saudi Arabia and Russia recently extended their pact to manage oil market production capacity, as Qatar shocked markets with notice that it’s leaving OPEC to concentrate on natural gas. West Texas Intermediate crude jumped more than 4% to $52.95 per barrel.
The Brexit chronicle continues as Prime Minister May attempts to charm members of Parliament. Recently, demands for full access to the legal advice offered for leaving the European Union has been requested by Parliament. May’s attorney-general is set to deliver a statement on the matter later today.