Declining Oil Prices The current price of crude oil as of July 7, 2017 is $44.23 per barrel (Macrotrends). Oil prices are currently at a six-month low due to reports of increased gasoline stockpiles and decreased demand in the summer season (CBC News). Canada is among one of the world’s largest energy producers due to its large supply of oil reserves. When oil prices are rising, our country’s economy experiences tremendous growth and the stock market rallies. The decline of oil prices since 2014 has had a direct negative impact on Canada due to our reliance upon oil as the major contributor for the well-being of our economy.
Declining oil prices have a very complicated effect on many different sectors of the economy. As a net oil exporter, Canada will be affected by changing consumer spending in …show more content…
From my personal experience, my parents changed their spending due to the decreased oil prices. One of the reasons they purchased an SUV in 2015 was because it was more affordable to do so. Despite the low gas mileage of the vehicle, they were more reluctant to purchase a high energy consuming vehicle due to the low costs for gasoline at the time. This is an example of how Canadian consumptions habits change to take advantage of lower energy costs. Additionally, other sectors in Canada can experience benefits, since oil is a key resource for many Canadian companies, they save on electricity, transportation, and heating costs. In combination with a declining Canadian dollar, exporters may experience more sales because Canadian goods are cheaper relative to international products. This
Declining oil prices have a very complicated effect on many different sectors of the economy. As a net oil exporter, Canada will be affected by changing consumer spending in …show more content…
From my personal experience, my parents changed their spending due to the decreased oil prices. One of the reasons they purchased an SUV in 2015 was because it was more affordable to do so. Despite the low gas mileage of the vehicle, they were more reluctant to purchase a high energy consuming vehicle due to the low costs for gasoline at the time. This is an example of how Canadian consumptions habits change to take advantage of lower energy costs. Additionally, other sectors in Canada can experience benefits, since oil is a key resource for many Canadian companies, they save on electricity, transportation, and heating costs. In combination with a declining Canadian dollar, exporters may experience more sales because Canadian goods are cheaper relative to international products. This