Canada Oil Problems
Canadian Stocks fell on a five-week low after the country keeps suffering from international trade problems. After the US dollar was boosted by the Greek crisis which reduced the value of Euro, the Canadian stocks dropped because of their dependency on the value of the US money. So oil and gold companies suffered the most with decreases varying from 2.8% to as much as 3.4% only for a few days.
The London market exchanged - the London electricians for the market grid, have traded less severely for Canadian stocks. The result is clear - the export of Canadian oil are reduced, the price of oil does not bring a significant income to the Canadian economy, the losses are estimated in billions and … other industries such as metal mining and energy sector are suffering from the market changes. Furthermore, the International Agency of Energy announced it would release almost 60 million barrels of oil in satisfaction of the increased demand for oil at such low prices.
Thus Canada would sell even less of the resources it offers on the global market and the commodity indexes of its resources offered keep decreasing. In other parts of the world, like Europe, oil is also causing problems - the commodity cannot be effectively traded at prices satisfying the expense of the purchase price which inevitably leads European traders to selling resources for less than these had been previously purchased.
Canada would still be aiming to recover its energy production in the next few days. However, the oil prices and the problems with the oil demand for Canadian oil might lead to further decrease in the price of oil globally.
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