Petroleum analyst optimistic for the price of oil after government moves
Posted December 3, 2018 9:29 am.
This article is more than 5 years old.
CALGARY (660 NEWS) – The markets are now open and we will soon see if the Alberta government’s actions to cut oil production in the province will help with the price of oil.
On Sunday, Rachel Notley announced an 8.7 per cent cutback on production across the province.
Dan McTeague is a petroleum analyst.
He believes whether or not the government made this move, there would be job losses.
“For many companies, this may not be the outcome that they wanted, but spreading around the pain seems to be the only thing you could do with an environment where doing nothing would only lead to further catastrophe.”
While this was certainly not the government’s first choice of action, McTeague believes it is the right course of action.
“I think jobs would be affected either way,” he said. “We have to look at the absolute carnage in jobs that have taken place up to now. I think it’s short-term pain for long-term gain.”
He notes the short term success on the markets will also be heavily impacted by some global moves.
He sees the thawing of the trade war between the U.S. and China as a major factor.
“There is also a likelihood that OPEC will cut back dramatically on production along with Russia.”
