The Canadian province of Alberta has ordered cuts in crude oil production until producers can reduce the excess supply already in storage. Alberta's premier, Richard Chang, announced on 2 December that oil companies would be forced to reduce their outputs by 8.7%, or 325,000 bpd, to bring down the excess, prompting a negative reaction from some companies that accused the government of excessive intervention in the market, while others cheered on. Canada's oil prices were offered at a $52 a barrel discount below WTI in October, as a lack of pipelines and transportation infrastructure constrains access to export markets.
The Canadian province of Alberta has ordered cuts in crude oil production until producers can reduce the excess supply already in storage. Alberta's premier, Rachel Notley, announced on 2 December that oil companies would be forced to reduce their outputs by 8.7%, or 325,000 bpd, to bring down the excess, prompting a negative reaction from some companies that accused the government of excessive intervention in the market, while others cheered on. Canada's oil prices were offered at a $52 a barrel discount below WTI in October, as a lack of pipelines and transportation infrastructure constrains access to export markets.