Sask. not following Alberta in cutting oil production

Natural Resources Minister Amarjeet Sohi

New-York-traded West Texas Intermediate (WTI), delivered at Cushing, Okla., is the benchmark price for light crude oil in North America.

"While 325,000 barrels per day is not going to meaningfully impact the global oil balance, it's extremely influential for really kickstarting Canadian oil prices", Tran said, adding that the cuts were a "heavy-handed mechanism" to raise prices.

Under current conditions, Alberta is producing 190,000 barrels of crude oil and bitumen per day over what can be now shipped out using pipeline, rail and other means.

Fagerheim said there are key differences between oil in the two provinces that means a similar initiative in Saskatchewan wouldn't do much.

The premier made the announced in Edmonton on Sunday, adding that the federal government was to blame for the high oil price differential that has driven the price of Alberta crude to almost $45 below the world price for oil.

Oil prices rose on Monday, buoyed by coordinated production cuts - cuts that did not come from Vienna (although that too could occur later this week). The hope is that by forcing oil companies to cut production, it will ease the regional oversupply that has put significant pressure on prices. The situation got to the point that Alberta Premier Rachel Notley mandated supply cuts across the industry. Alberta's oil is now fetching bargain basement prices thanks to a growing glut and lack of pipeline capacity to get oil to market.

Suncor said in a statement Monday that price differentials were already narrowing.

- Canadian Dollar rises broadly as oil markets rebound on Monday.

Husky Energy does a lot of business in Saskatchewan's oil industry as well as Alberta's.

Four days earlier, Notley announced the province would be buying up to 80 locomotives and 7,000 rail cars as the first measure to address the glut.

But he said Notley's government has played a role in creating the problem by not pushing back as the federal government cancelled the Northern Gateway pipeline to B.C. and introduced legislation that industry leaders say will make it more hard to get oil megaprojects approved.

Russian Federation and Saudi Arabia's governments reached an agreement to extend their agreement to cut oil production. After that, the production restriction will drop to an average of 95,000 BPD until the end of 2019 when the new rule expires. This is especially true if companies with their own US refining capacity, like Husky Energy Inc., Imperial Oil Ltd. and Suncor Energy Inc., decide to squeeze their own workers till the pips squeak to punish the government for reducing their profit expectations for the greater good.

"Our oil production and market for our product is significantly different than Alberta's".

"We've got challenges with respect to pipelines, we've got challenges with respect to rail and now we've got challenges with respect to our demand market", Allan Fogwill, CEO of the Canadian Energy Research Institute said at a presentation in Calgary Wednesday.

"A crisis of this magnitude must be reflected in any discussion on "economic competitiveness.' We trust that the agenda for our upcoming first ministers" meeting can be revised to better reflect the need for a substantive discussion on issues of critical importance to the Canadian economy".

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