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Alberta Premier Rachel Notley speaks to cabinet members about an 8.7 percent oil production cut to help deal with low prices, in Edmonton on Monday December 3, 2018. A panel of experts says it’s unlikely a dramatic improvement in western Canadian oil prices since Alberta Premier Rachel Notley announced production curtailments on Dec. 2 will continue after the cuts begin on Jan. 1. The difference between Western Canadian Select bitumen-blend heavy oil and New York-traded West Texas Intermediate oil prices had widened to as much as US$52 a barrel in October and hovered at about US$25.50 on Dec. 3. Calgary trading company Net Energy says the differential tightened to as little as US$10.25 on Tuesday this week and was flat at US$12.25 on Thursday for barrels to be delivered in January. READ MORE: Edmonton economy will feel hit of oil production cuts, chief economist says Grant Bishop, associate director of research for the C.D. Howe Institute, says current prices are based on speculation about what the market will look like in January and that will change after curtailments actually begin. Speaking after a panel discussion on the topic in downtown Calgary, he and panellist Trevor Tombe, assistant economics professor […]
