American oil and gas production hurting Canadian commodities

first_imgHe also cited recent data showing for the first time since 1995, the U.S. added three million jobs in 2014, and noted the stronger American economy is responsible for driving up the value of the U.S. dollar.That in turn he said is hurting commodities, as they typically have an inverse relationship with the American dollar.Still, he also noted, U.S. oil demand is up about 700,000 barrels a day since November, and he therefore concluded, if the European economy starts to improve, and if China’s normalizes, the oil and gas industry should be a major beneficiary – leaving open the possibility those who have forecast the price of oil could be back to $80.00 by the end of the year could be right. Even though price of crude oil remains below $50.00 a barrel U.S., and more than 50 per cent less than it was early last summer, pump prices are being hiked across the country.Locally, a $0.08 regular litre increase started to take hold yesterday, and although it has yet to be as confirmed city-wide, as of 6:00 a.m. this morning, it looked like $1.12.09 could soon be the new common posted price.According to gasbuddy.com, that’s still $0.03.5 a litre less than the B.C. average, but it’s nearly $0.08.5 more than the national average.- Advertisement -Making any sense out of this appears next to impossible, as even oil and gas industry analysts are struggling with that challenge.One of the latest assessments however, has come from RBC Global Asset Managements Chris Beer, and he’s put the explanatory focus on the U.S. economy.In a recent Vancouver Sun article, he suggested the Americans are largely responsible for oil supply and demand being out of balance, and he noted the U.S. grew production by one million barrels a day last year.Advertisementlast_img

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