Global oil prices might have hit rock bottom: IEA

FORT ST. JOHN, B.C. — Brent futures were trading at about $40 U.S. by the end of the week, and the International Energy Agency, which represents the world’s major oil-consuming nations, says the price of oil may have already hit bottom.

The agency’s monthly report says, for prices, there may be light at the end of what has been ‘a long, dark tunnel as market forces are working their magic and higher cost producers are cutting output.’

This new report says inventories in the developed world contracted last month for the first time in a year from the so-called comfortable levels recorded in January. IEA believes world oil consumption will increase by 1.2 million barrels a day in the first half of this year.

It also notes oil prices have recovered 50 per cent from a twelve year low in January and it now expects production outside the Organization of Petroleum Exporting Countries will decline by 750,000 barrels a day this year, and that’s 150,000 more than it estimated last month.

However, the Paris-based organization also cautions the recent recovery in crude prices doesn’t mean a sustained rebound is in the near future as there has also been a sharp slowdown in demand growth, particularly in the U.S. and China.

Chinese, and Asian demand in general, remain the key to the development of any B.C. LNG industry and we could be only about a week away from a major development on that front.

With the public feedback period over on the draft report of the Canadian Environmental Assessment Agency, it’s now expected the Trudeau government could announce its decision on the proposed Pacific Northwest project next week.

That noted, Prince George – Peace River – Northern Rockies MP Bob Zimmer rose in the Commons at the end of last week with a last pitch for project approval.

“Mr. Speaker, the Pacific NorthWest LNG project has gone through a highly rigorous environmental-review process, as we all know, which it passed. Today is the final day for the public to comment. I highly encourage all Canadians to comment today on that project.

This LNG project would create thousands of highly paying jobs in B.C. and Canada; billions of dollars in tax revenue; and would reduce global pollution. If the LNG projects in B.C. are completed, Asia would see a massive reduction of emissions and be a positive for our global environment. People around the globe would breathe cleaner air because of B.C. LNG.”