The Canadian economy is under serious threat, and in order for it to succeed, it needs a more competitive environment, with oil rates dropping to its lowest levels in the past month. Bloomberg has reported that US gasoline reserves has grown unexpectedly, and their crude oil production has reached the highest levels, since August 2015. The oil output of the United States has put the Canadian economy under great pressure, as growth of US oil production is now at unprecedented levels, and Canada is unable to meet the expected oil prices.
Bloomberg has reported that Crude oil production in the US has increased by more than 17,000 barrels in a single day, and it is expected to be at 9.25 million in the month of April. The output in the lower-48 states has increased to about 21,000 barrels a day, which will amount to 8.72 million, and will be the highest, since August 2015. When you add the ever-changing market with the pro-business policies of the Trump Administration, it becomes clear that Canada is currently going down a dangerous path, which will put it in a bad position against the competitive world.
The economic competition and tougher oil market has thrown down the gauntlet that Canada needs to seriously strengthen its economy in order to compete. This means that there is a serious case for lowering business and personal taxes, removing regulations, and eliminating the carbon tax. All of these things are being imposed by the Trudeau administration and it is only weakening the economy.
It is really unfortunate that Trudeau doesn’t want the Canadian economy to prosper, because by backing increased regulations and the carbon tax, the economy is becoming less competitive. This is going to result in reduce domestic demand, and consumers will have even less to spend. The only thing this will achieve is put Canada in a weaker position, when it comes to deal with oil rates, and is going to lead to bad economic results in the future.