Alberta seen growing at slowest pace in 5 years after oil prices plunge
Alberta, which derives a quarter of its economy from the oil sands and other energy resources, is poised to grow at the slowest pace in five years as crude prices slump, ATB Financial’s Todd Hirsch said.
The western Canadian province’s economy will expand by 2.5% to 3% in 2015, about half a percentage point less than this year, the bank’s chief economist said at an event in Calgary Thursday. The slowdown follows annual average growth of 4.6% in the past four years.
The West Texas Intermediate and Brent oil benchmarks extended losses to four-year lows Thursday after OPEC signaled it remains unwilling to reduce output to ease a supply glut. The decline of more than 30% from June highs for those crudes means that, while major oil-sands producers will probably sustain the development of projects, smaller ones may scale back investment, Hirsch said.
WTI, which closed at $74.21 a barrel on the New York Mercantile Exchange Thursday, will likely trade between $70 and $75 a barrel for the rest of the year and rebound to $85 to $90 next year, Hirsch said. About a quarter of oil-sands projects are at risk as prices fall, the International Energy Agency said Oct. 14.
Alberta seen growing at slowest pace in 5 years after oil prices plunge | Financial Post
Alberta, which derives a quarter of its economy from the oil sands and other energy resources, is poised to grow at the slowest pace in five years as crude prices slump, ATB Financial’s Todd Hirsch said.
The western Canadian province’s economy will expand by 2.5% to 3% in 2015, about half a percentage point less than this year, the bank’s chief economist said at an event in Calgary Thursday. The slowdown follows annual average growth of 4.6% in the past four years.
The West Texas Intermediate and Brent oil benchmarks extended losses to four-year lows Thursday after OPEC signaled it remains unwilling to reduce output to ease a supply glut. The decline of more than 30% from June highs for those crudes means that, while major oil-sands producers will probably sustain the development of projects, smaller ones may scale back investment, Hirsch said.
WTI, which closed at $74.21 a barrel on the New York Mercantile Exchange Thursday, will likely trade between $70 and $75 a barrel for the rest of the year and rebound to $85 to $90 next year, Hirsch said. About a quarter of oil-sands projects are at risk as prices fall, the International Energy Agency said Oct. 14.
Alberta seen growing at slowest pace in 5 years after oil prices plunge | Financial Post
