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chemgear · 10-28-2015, 05:10 AM

http://www.cbc.ca/news/business/albe...nomy-1.3291097

Oil forecast optimistic

The budget assumes oil prices will average $50 US this fiscal year, then $61 US in 2016-217, and $68 in 2017-18. While that may seem reasonable, the futures market thinks differently.

The so-called forward strip, the U.S. futures contracts on which traders and energy companies alike depend when making investment decisions, assumes the U.S. crude benchmark will be $55.43 US in December 2018, $13 US lower than the province assumes.

If the market is right and Alberta is wrong, that's a $2 billion difference to the budget in 2017-18.

10-28-2015, 05:10 AM	#122
chemgear Franchise Player Join Date: Feb 2010 Exp:	http://www.cbc.ca/news/business/albe...nomy-1.3291097 Oil forecast optimistic The budget assumes oil prices will average $50 US this fiscal year, then $61 US in 2016-217, and $68 in 2017-18. While that may seem reasonable, the futures market thinks differently. The so-called forward strip, the U.S. futures contracts on which traders and energy companies alike depend when making investment decisions, assumes the U.S. crude benchmark will be $55.43 US in December 2018, $13 US lower than the province assumes. If the market is right and Alberta is wrong, that's a $2 billion difference to the budget in 2017-18.