Oil prices have risen as high as nine per cent as the Organization of the Petroleum Exporting Countries has agreed to cut oil output for the first time since 2008. Brent crude futures are already up $3.86 a barrel to $50.24 U.S, and West Texas Intermediate crude futures are up $4.26 to $49.49 U.S. by noon MT Wednesday.
President of the Grande Prairie Petroleum Association Rob Petrone argues the news is even more important for Canada than Tuesday’s approval of the Trans Mountain pipeline extension and the Line 3 replacement.
“If we can cut production and raise the price of oil up around $55 to $60 to make it economical then you know you can generate enough cash that encourages capital investment… hopefully with this announcement from OPEC we continue to see oil strengthen and bring back some capital investment into the country, which really drives the economy.”
International oil ministers aim to cut more than one million barrels a day off current production. A cut would impact vehicle fuel, heating and electricity prices.