North American producers assumed that Saudi Arabia would reduce output to support prices. Instead, the world’s largest producer and exporter of oil elected to accept lower prices.
The July benchmark contract for West Texas Intermediate crude closed 67 cents higher to US$50.36 a barrel, marking the first time oil has settled above the US$50 mark since July 21, 2015.
Both Alberta and Newfoundland and Labrador were handed revised, negative ratings for their credit outlooks Thursday as the price of oil continued its plunge