Con­fer­ence Board of Canada takes cau­tious view on crude price re­bound

Cape Breton Post - - BUSINESS EXTRA -

CAL­GARY — The Con­fer­ence Board of Canada says it's tak­ing a cau­tious view of crude prices, even though they've im­proved sub­stan­tially since the be­gin­ning of the year. The key U.S. bench­mark, West Texas In­ter­me­di­ate, has been hov­er­ing around the US$60 mark for the past few months af­ter dip­ping as low as US$44 in Jan­uary. The Ot­tawa-based eco­nomic think-tank ex­pects WTI to grad­u­ally re­cover over the next few months, but re­main be­low US$65 a bar­rel even by the end of 2015. That's welcome in Canada's oil in­dus­try, where many drillers can't make ends meet with oil be­low US$50 and still strug­gle in the US$60 range. The board says although a drop back to US$50 a bar­rel is un­likely, the days of US$100 crude are be­com­ing an in­creas­ingly dis­tant mem­ory. There are risks that could cause a pull­back, like high U.S. in­ven­tory lev­els, greater Saudi pro­duc­tion and a surge in U.S. shale pro­duc­tion.

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