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Boosted by Premier Rachel Notley’s announcement that Alberta would be cutting crude production by 325,000 barrels per day, Canadian oil prices rallied after reaching historic lows in November. Notley said on Sunday that Alberta would be cutting crude production beginning in January in an attempt to deal with the massive oversupply that led to Canadian oil being traded at an historic low of US$13.27 in mid-November. Executives of upstream oil companies such as Cenovus Energy and Canadian Natural Resources have urged Notley to intervene for weeks, saying that they couldn’t transfer the oil they were producing without sufficient pipeline space, leading to hundreds of thousands of barrels clogging up warehouses and being sold at a discount. On Monday, Notley’s decision sent Western Canada Select up 50 per cent to trade at US$32.91 as of 10:40 a.m. On Friday, Canadian oil closed at US$21.93. As oil prices rebounded, so too did the stocks of Alberta’s producers. Canadian Natural Resources was the best performing stock on the Toronto Stock Exchange, trading at $36.41 on Monday — 9.91 per cent higher than its Friday close of $33.39. Other producers such as Cenovus, Crescent Point Energy Corp. and Tamarack Valley Energy Ltd. each […]
