Canadian company officials doubt long-term oil price drop — Bloomberg

InPlay Oil Corp. CEO Douglas Bartole believes the current drop in oil prices is a market shock in response to a new round of Donald Trump's import tariffs. The real indicators do not correspond to investors' catastrophic assessments, the expert said at the BMO CAPP Energy Symposium in Toronto.

The markets are worried due to the unexpectedness of the recent changes. Tougher US President's trade policy and OPEC+ oil production increase caught traders, already fearing supply and demand imbalance, off guard, Bloomberg reports.

At the same symposium, Dean Setoguchi of Keyera Corp. noted that investors are underestimating the sustainability of energy consumption. The Covid-19 pandemic is evidence of the indicator's stability, he said. In this regard, the expert does not expect a significant decline in oil demand.

According to Peter Tertzakian, founder of the ARC Energy Research Institute in Calgary, lower prices for raw materials may also force American companies to reduce production.

Thus, Canada doubts the long-term decline in oil prices, Bloomberg concludes.