To convey the pessimism of the oil slump over the Canadian economy, Alberta’s Premier Jason Kenney recently crossed wires.
Key quotes
The federal government should take more action on oil prices.
Negative oil prices are very serious for Canada.
Sees market based production cuts at 400K barrels per day (bpd).
Talking to Texas RRC, DOE about oil cuts.
Oil inventories are reaching tank tops.
Seeking C$15-30 billion Federal credit back stop.
FX implications
The market’s paid a little heed to the news as such negative statements were anticipated to roll out following the WTI’s drop in negative territory (for May contract) given Canada’s dependence on oil. Also, a lack of clear direction offered an additional reason for the market’s lack of attention to the update.
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