Front-month crude oil settled at US$66.73 a barrel in trading Wednesday. The rate for the benchmark West Texas Intermediate fell more than five dollars over the day.
Brent, the benchmark for light, sweet crude offshore Newfoundland and Labrador, finished trading at US$64.52 per barrel on the New York Mercantile Exchange. Reduced demand is the key factor in the lowered prices.
Some analysts are speculating that major international projects such as oil sands and deep water offshore major be jeopardized by the falling oil prices. However, Husky Energy's John Lau is quoted by the Globe and Mail's Report on Business:
"I'm quite sure major developers with deep pockets will continue to focus on oilsands development," Mr. Lau said. "Oil sands developments are very special projects. [But] in view of the high costs and also labour shortage, most of the of the small projects are facing a lot of challenges."