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Oil Sands Cost Cutting ‘Close to Bone’ as Crude Stalls

  • Shares of Canadian producers at risk for a correction
  • Further cost reductions likely with new oil-sands projects
Bloomberg business news

OPEC Agrees to Cut Oil Output, What's Next for Prices?

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Canadian oil-sands producers are running out of tricks to buoy their share prices as crude prices keep bumping up against a $50 ceiling.

After two years of slashing costs to cope with plunging oil prices, shares began rebounding as the market appeared to hit a bottom earlier this year. Now, with the commodity recovery taking longer than expected -- even with this week’s agreement by OPEC to limit supply -- and the pace of reductions slowing, a correction could be in store for oil-sands shares.