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By The Canadian Press

Alberta economy takes gut punch due to oil price war

Mar 9, 2020 | 2:46 PM

EDMONTON, AB. — Alberta’s oil-based economy, already reeling by reduced demand due to the novel coronavirus, is now getting a gut punch from global prices.

The spiral of oil prices has accelerated due to an all-out price war between Saudi Arabia and Russia.

The price for West Texas Intermediate crude has fallen to US$32 a barrel, down more than $8 from Friday’s close and $26 lower than the price forecast in Alberta’s budget.

Each $1 drop in price represents about $200 million cut from Alberta’s bottom line.

On Sunday, Alberta Energy Minister Sonya Savage said on Twitter that she is watching developments but noted the energy industry has lowered costs and become efficient over the years.

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Premier Jason Kenney has also said his promise to end the deficit by 2023 may not happen.