black monday on the markets Alberta economy, reeling from coronavirus, takes gut punch due to oil price war Mar 9, 2020 11:16 AM

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.