Another reason to scrap the carbon tax
Oil prices have fallen to the lowest level in three months, reaching $51.02 per barrel, down .68% from the previous session.
The fall in price is due to an increased US oil rig count.
According to Reuters, US oil drillers have added rigs eight weeks in a row.
The US is striking at a time when OPEC is weak, in what appears to be a clever strategic move – whether planned or not.
With OPEC recently agreeing to cut output, the US appears to be filling in the gap. This means OPEC is losing market share without getting any gain from higher prices – which they hoped their output cuts would achieve.
In the last week, US crude oil inventories increased by 8.2 million barrels.
Challenge for Canada
Canada’s government has been hoping for oil prices to rebound (since they don’t have a better plan).
However, that hope could be in serious jeopardy if US production keeps increasing. Things could get even worse if OPEC panics and ramps up production again to regain market share from the surging US producers.
This is yet another reason Canada must scrap the carbon tax. Making our energy industry weaker at exactly the moment international competition heats up is a monumentally foolish economic strategy.
Our government must stop working against Canadian interests, and start supporting our energy industry.