February 3, 2021 – Calgary Herald
Varcoe: As oil rises to $55, Imperial focuses on costs — not spending more to add production
By: Chris Varcoe
Oil prices have been rising since early November, up 13 per cent since the end of last year. On Tuesday, prices for West Texas Intermediate crude closed at US$54.76, having pushed through $55 earlier in the day.
Martin King, a senior analyst at RBN Energy in Calgary, said oil markets have been rebounding as optimism grows that demand will improve once the summer arrives and COVID-19 vaccinations ramp up.
Planned production cuts by Saudi Arabia this month and falling global oil inventories are also propelling markets higher.
With prices above $50 a barrel, oilsands operators can make money, pay down debt and generate additional cash flow.
“For the oilsands producers, they have licked their wounds and healed to some extent from the meltdown in the spring,” said King.
“These are comfortable prices for them. They don’t need to (change their) production. It’s all about just largely focusing on the cash coming in.”
Read the full article here: https://calgaryherald.com/opinion/columnists/varcoe-as-oil-rises-to-55-imperial-focuses-on-costs-not-spending-more-to-add-production
