OPEC Oil Output Cut to Ease Pressure on Canadian Producers

Canadian oil sands producers are set to benefit from an increase in oil prices should the Organization of the Petroleum Exporting Countries (OPEC) cut its output, Canada's Ministry of Natural Resources spokeswoman Cathy Khoury told Sputnik.

MOSCOW (Sputnik), Anastasia Levchenko – The spokeswoman added that Canada had no knowledge of whether OPEC member states were going to cut production or not.

"Most analysts expect Canadian oil sands production to continue to increase, but at a slower pace as a result of the decline in prices.  Should a cut by OPEC lead to higher prices, it could help to alleviate the pressure facing Canadian producers," she said.

"The Government of Canada is not a member of OPEC. As such, we cannot predict and will not speculate on whether they will adjust their forecast," she said.

Reacting to global overcapacity, market prices for crude benchmarks slid to a 12-year low in mid-January, dipping below the historic level of $30 per barrel. 

Canada Not Invited to OPEC, Non-OPEC Countries Talks on Oil Market Situation

Canada has not been invited to a meeting of the Organization of the Petroleum Exporting Countries (OPEC) with oil producing states outside the cartel, a spokeswoman for the Ministry of Natural Resources told Sputnik, amid speculation about possible talks on stemming the decline in oil prices.

Over recent weeks, officials from OPEC and non-OPEC oil producing states have spoken of a possible meeting to address declining oil prices, which have caused significant financial problems for some states.

"The Government of Canada has not received an invitation to take part in an upcoming OPEC meeting," Cathy Khoury said.

Canada has no knowledge of the potential meeting's objectives or possible outcomes, the spokeswoman added. 

On Monday, Russian Energy Minister Alexander Novak and Venezuela's Oil Minister Eulogio Del Pino discussed the possibility of holding oil consultations with OPEC members and non-cartel countries. Russia has emphasized its willingness to join the meeting should it be scheduled.

Canada is a major non-OPEC oil producer with an output of over 1 million barrels of conventional oil per day, and almost 4 million barrels per day when heavy oil sands hydrocarbons are included.

It was estimated in a late 2015 report by the Conference Board of Canada think-tank that the country's oil companies would loose some $2 billion that year, as industry revenues fell by 22 percent and investment was down by almost 40 percent compared to 2014.

In recent weeks, officials from OPEC and non-OPEC oil producing states have spoken of a possible meeting to address the decline in oil prices, at which an agreement on jointly reducing output is expected to be reached.