The Impact of Oil Prices on the Canadian Economy Introduction Who would have thought that the desperate act of one fruit vendor in a small village in Tunisia would unleash a wave of revolution in countries across the Middle East and North Africa (MENA), toppling regimes and challenging the status quo? [...] The slump in the U. S. dollar third largest oil producer, dropped from 1.58 has also driven prices higher.1 However, unrest million barrels per day before the war to an in the MENA region and related supply concerns estimated 200,000 barrels per day in May. [...] It will be evolu- While other member countries2 of the Organi- tionary change and not revolutionary change.”4 zation of the Petroleum Exporting Countries (OPEC) have increased production, and there is Large and persistent increases in the price of oil enough spare capacity (the bulk in Saudi Arabia) can have a significant impact on Canada’s eco- to replace the loss in output,3 the oil is not of th [...] The TSX, in particular, is Canada in the past two decades.”5 heavily weighted towards energy stocks (major oil and gas producers account for about 27 per To limit the impact of inflationary pressures cent of the TSX’s market cap). [...] The recent rise emanating from rising oil prices, the Bank of in oil prices has boosted profi ts at many energy Canada pays close attention to the core infl ation companies, lifting the returns of mutual funds rate which excludes components whose prices that specialize in energy stocks to the benefi t of are highly volatile, like energy and food.
- Pages
- 7
- Published in
- Canada
