Oil price at $85 costing provinces and economy billions
The sudden new reality of oil at $85 US a barrel is a jarring wake-up for the three oil-rich provinces of Alberta, Saskatchewan and Newfoundland and Labrador.
Oil prices touched new lows Friday, down almost $1 to $84.90 a barrel. That's the lowest price seen since April 2013. The price for the main North American oil benchmark, known as West Texas Intermediate, is now down more than 20 per cent from recent highs — which means oil has met the technical definition of a price correction.
In a report titled 'Life with $85 Oil' BMO economist Robert Kavcic noted those lower prices are costing billions to Canada's three most oil-dependent provinces: Alberta, Saskatchewan and Newfoundland and Labrador.
In recent budgets, all three provinces made revenue projections based on assumptions that oil prices would be a lot higher than they are.
READ MORE: http://www.cbc.ca/news/business/oil-price-at-85-costing-provinces-and-economy-billions-1.2795062
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