Export Development Canada forecast Thursday at Canadian exports will rise by 4.2% based on high energy prices.
EDC is also predicting the Canadian dollar will drop to between US$0.94 and US$0.97 cents in early 2009.
“While EDC recognizes that global supply and demand for crude is tight, we sees signs that a large price correction is on the horizon”, Mr. Hall continued. “On the demand front, growth expectations are likely to moderate as the global slowdown spreads and oil price subsidies in emerging markets are scaled back. On the supply front, the Energy Information Administration is already forecasting a doubling of OPEC surplus capacity, to 4 million barrels per day in 2009, and non-OPEC supply gains of 1 million barrels per day.”
The forecasted correction: crude below US$100 per barrel before the end of 2008 and averaging US$84 per barrel in 2009.