Crude oil skidded to a 5 1/2-year low as the Organization of Petroleum
Exporting Countries showed no sign it would step in to rescue prices that have
dropped to levels forcing deep spending cuts throughout the oil industry.
In Canada, energy companies that have recently reduced their 2015 capital expenditure budgets by double-digit percentages will likely have to claw back spending again if prices remain in the current range for much longer.
Crude prices began the day in positive territory against a backdrop of supply disruption due to violence in Libya, but market fears resurfaced that crude is still too plentiful as the outlook for demand weakens.
U.S. benchmark West Texas Intermediate oil fell $1.12 (U.S.) to settle at $53.61 a barrel, its lowest since May, 2009. U.S. crude has lost roughly half its value since June, and some analysts see little meaningful recovery in prices until the second half of 2015.
Read more: No relief in sight as oil hits five-year low - The Globe and Mail
In Canada, energy companies that have recently reduced their 2015 capital expenditure budgets by double-digit percentages will likely have to claw back spending again if prices remain in the current range for much longer.
Crude prices began the day in positive territory against a backdrop of supply disruption due to violence in Libya, but market fears resurfaced that crude is still too plentiful as the outlook for demand weakens.
U.S. benchmark West Texas Intermediate oil fell $1.12 (U.S.) to settle at $53.61 a barrel, its lowest since May, 2009. U.S. crude has lost roughly half its value since June, and some analysts see little meaningful recovery in prices until the second half of 2015.
Read more: No relief in sight as oil hits five-year low - The Globe and Mail
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