November 3, 2020 – Calgary Herald
Varcoe: Trying to instil confidence as economic challenges mount
By Chris Varcoe
Alberta’s economic recovery is encountering greater resistance than it faced just a few weeks ago, with oil prices slipping below US$37 a barrel, the second wave of a global pandemic taking hold and layoffs battering the energy sector…
Read the full article here: https://calgaryherald.com/opinion/columnists/varcoe-trying-to-instil-confidence-as-economic-challenges-mount
Concerns about lockdown orders in Europe — including France and England — have sent jitters through oil markets. As well, there are worries about the potential for oil exports growing from Libya and the implications of Tuesday’s U.S. election.
Prices for U.S. benchmark West Texas Intermediate crude dropped down to $34.74 a barrel on Friday, before rebounding to close at $36.81 on Monday.
“It seems like it’s partially psychological. Everybody is talking about demand weakness,” said Martin King, senior analyst at RBN Energy in Calgary.
“Once we get past the lockdown worries in Europe and we transition to 2021, you will see prices come back. Now, I don’t think they will come back a lot.”