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Oil Prices Wars Affects Canada as COVID 19 Leads to Market Drop

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Oil Prices Rising

Oil Prices On the Rise

After the oil prices war, Canada is now set to reduce its oil production by 11%. Meaning, they will have to cut down by 440 000 barrels per day. There seems to be no more storage space to store more oil. That is something that you do not have to worry about with online casinos. There is space for everyone to have an exclusive casino gaming experience. Unlike land casinos, casinos online will never reach full capacity.

Originally, Western Canada’s storage capacity is currently at 40 million barrels. Today, the storage capacity is at 30 million. Meaning, there is only enough space for 10 million barrels of oil.

The oil price war between Russia and Saudi Arabia seems to be making things worse. The demand for oil has fallen by 30 %

Today’s Oil Prices Chart

Oil is at its lowest price, but sales seem to be going up. Previously, the Oil market was thriving at $60 per barrel. Currently, it is being sold for a price as low as $10.94 in the Canadian crude market.

Here is the chart of the global oil prices of some of the major 150 oil blends.

Oil Prices On the Rise

Oil Prices Chart in Canada

The above chart shows the different oil companies and how the different oil providers are increasing their oil prices. The Canadian Crude oil is not recording any price increases or changes all. Meaning, it is just staying in the safe zone for now.

Canadian Government to Bailout its Oil Industry

After the oil price decline, the Canadian government has promised its oil industry CA$ 15 billion for the survival of the oil industry.

This is quite a reasonable thing to do. Especially considering the oil industry is providing employment for over 100,000.

Canadian Oil Stocks at Risk

Now that the oil industry is dodgy, the Canadian oil stock market is definitely feeling the heat as well. For example, Berkshire Hathaway had recently purchased 10, 8 million stocks at Suncor energy.

But, they can still keep the hopes up. Especially considering the fact that this is no new occurrence. The oil industry had a similar problem in 2019 but still managed to rise.

Conclusion

The oil industry is quite a gamble when it comes to investing. But when the oil prices are on point and everything is in order. It brings in big bucks, hence, we can understand why the Canadian government quickly offered to help out.

Oil Prices FAQs

The demand for oil has decreased due to the COVID 19 outbreak. Hence, the pricing factor may be affected in some way.
Oil pricing differs according to the market you are buying. But, in Canada a barrel of oil today is going for $24.60.
The highest price of oil was recorded at $136.31 in 2008.
Current records say that Canada produces the most oil barrels at 169,709 million.
China imports its oil from the US. In turn, the US depends on Saudi Arabia and the Middle East for its oil supplies.



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