Why a Provincial Crisis in Western Canada Is Boosting Global Oil
- Alberta premier orders oil production cuts starting January
- Daily reductions equivalent to what three OPEC members produce
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Global oil giants like the U.S., Russia and Saudi Arabia that command the attention of traders had some unexpected company on Sunday: a province of less than 5 million people in Western Canada.
Alberta added to a crude price rally Monday when Premier Rachel Notley announced producers must reduce output by 325,000 barrels a day starting next month. That’s more than the production of three of the 15 members of the Organization of Petroleum Exporting Countries (Equatorial Guinea, Gabon and the Republic of Congo) and nearly a fifth the size of the cuts OPEC and its allies agreed to nearly two years ago.