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With Oil at Record Low, Canada Is First Price-War Casualty

  • Benchmark price for Canada’s oil sands dips below $8 a barrel
  • Industry that generates 10% of country’s GDP facing new crisis
Suncor Energy Inc. Fort Hills Oil-Sands Extraction Site Grand Opening As CEO Expects Trans Mountain Plan In Weeks
Photographer: Ben Nelms/Bloomberg
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In the oil price war between Saudi Arabia and Russia, the first big victim is likely to be Canada.

Hit by unfettered supply from the world’s top two crude exporters and reduced demand from the coronavirus, the benchmark blend of crude produced from Canada’s oil sands plunged to a record low of $7.47 a barrel on Wednesday. The fallout: Virtually every barrel of oil produced there will come at a loss at a time when the energy industry generates 10% of Canada’s gross domestic product and a fifth of its exports.