Oil prices were at their highest levels since 2014 in trading Monday, after the Organization of Petroleum Exporting Countries decided not to raise output.
In a meeting Sunday in Algiers, OPEC rejected U.S. President Donald Trump’s call to open the taps, with both Saudi Arabia and Russia saying they won’t produce significantly more oil.
For consumers, that could mean higher gas prices on the way, but it’s good news for Canadian oil producers and initially helped boost stock prices in Toronto today.
On Monday morning, Brent crude, the main European futures contract, rose above $80 US a barrel to $81.17 US at midday. WTI crude, the benchmark North American contract, was up 1.7 per cent at $72.50 US a barrel.
Those are the highest prices since December of 2014, just before oil began its slide that took it down to $40 US a barrel in 2015, discouraging investment in the oil patch.
The Canadian market, which is heavily dependent on the energy sector, responded with optimism. with the TSX up 24 points. However, by midday results were mixed with the TSX flat at 16,228.
Tariffs weigh on global stocks
Global stocks sank, in part because the U.S. and China officially placed new tariffs on each other’s goods, a move that could discourage consumer spending and slow economic growth.
The OPEC governor, Hossein Kazempour Ardebili of Iran, said in comments to Reuters that Saudi Arabia and Russia were unable and unwilling to add more production at short notice.
“They are doing little and late, to get prices higher,” he said. “They got prices higher and they are going to get them higher still.”
Saudi Arabia successfully negotiated limits on oil production 18 months ago in an effort to get oil prices higher and boost government coffers, which had suffered from an extended period of cheaper oil.
This year the global economy has been expanding strongly, leading to growth in oil consumption and pushing up crude prices.
Trump had demanded OPEC get prices down
On Sept. 20, Trump sent a tweet demanding OPEC produce more to get oil prices down and thus boost the U.S. economy.
“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!” he tweeted.
OPEC agreed to produce more earlier this year at Trump’s request. However, Saudi Arabia and Russia now say they have no more capacity.
With files from Reuters, Associated Press
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Sherwood Park is a large hamlet in Alberta, Canada within Strathcona County that is recognized as an urban service area. It is located adjacent to the City of Edmonton’s eastern boundary, generally south of Highway 16 (Yellowhead Trail), west of Highway 21 and north of Highway 630 (Wye Road). Other portions of Sherwood Park extend beyond Yellowhead Trail and Wye Road, while Anthony Henday Drive (Highway 216) separates Refinery Row to the west from the balance of the hamlet to the east.
Sherwood Park was established in 1955 on farmland of the Smeltzer family, east of Edmonton. With a population of 70,618 in 2016, Sherwood Park has enough people to be Alberta’s seventh largest city, but technically retains the status of a hamlet. The Government of Alberta recognizes the Sherwood Park Urban Service Area as equivalent to a city.
Sherwood Park, originally named Campbelltown, was founded by John Hook Campbell and John Mitchell in 1953 when the Municipal District of Strathcona No. 83 approved their proposed development of a bedroom community east of Edmonton. The first homes within the community were marketed to the public in 1955. Canada Post intervened on the name of Campbelltown due to the existence of several other communities in Canada within the same name, so the community’s name was changed to Sherwood Park in 1956.
The Sherwood Park Urban Service Area is located in the Edmonton Capital Region along the western edge of central Strathcona County adjacent to the City of Edmonton. The majority of the community is bound by Highway 16 (Yellowhead Highway) to the north, Highway 21 to the east, Highway 630 (Wye Road) to the south, and Anthony Henday Drive (Highway 216) to the west. The Refinery Row portion of Sherwood Park is located across Anthony Henday Drive to the west, between Sherwood Park Freeway and Highway 16. Numerous developments fronting the south side of Wye Road, including Wye Gardens, Wye Crossing, Salisbury Village and the Estates of Sherwood Park, are also within the community. Lands north of Highway 16 and south of Township Road 534/Oldman Creek between Range Road 232 (Sherwood Drive) to the west and Highway 21 to the east are also within the Sherwood Park urban service area.