Alberta’s Kenney: Federal government should take more action on oil prices

Anil Panchal FXStreet

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.

Also read: US President Trump: Looking at putting as much as 75 million barrels into strategic petroleum reserves

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.