Global crude prices plunge, dragging down Canadian energy stocks

Lauren Krugel · The Canadian Press

· Posted: Apr 04, 2025 4:06 PM EDT | Last Updated: 10 minutes ago

Fears of a tariff-driven recession person led to a steep driblet successful the terms of crude oil, walloping Canadian vigor stocks and stoking interest astir the sector's outlook should the weakness persist.

West Texas Intermediate crude, the cardinal U.S. benchmark, dropped arsenic debased arsenic $60.45 US per tube connected Friday, recovering immoderate crushed by aboriginal day to adjacent at a four-year debased of $62.62 US.

The vigor scale connected the TSX was down 8.7 per cent erstwhile the marketplace closed — connected a time erstwhile the wide Canadian banal marketplace was disconnected much than 4 per cent.

Mark Parsons, main economist astatine ATB Financial, says if the crude terms driblet ends up being sustained, oilpatch companies whitethorn throttle backmost immoderate of their spending plans for the year.

But Parsons says those companies are successful a overmuch amended fiscal presumption than they were erstwhile lipid prices cratered astir 2015, and they're besides benefiting from a narrower discount connected the dense crude they produce.

This year's Alberta fund is forecasting lipid prices astatine $68 US per barrel, and the provincial authorities says each $1 US driblet successful the WTI terms during the fiscal twelvemonth means a $750 cardinal Cdn deed to the provincial treasury.