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Explainer: Why is Canada's Alberta forcing oil production cuts?

Reuters 

By Julie Gordon(Reuters) - The Western Canadian province of Alberta this week announced mandated temporary oil production cuts, a rare move aimed at bolstering sagging crude prices caused by rising production that has outstripped pipeline capacity and led to a glut in storage.WHY MANDATE PRODUCTION CUTS?Alberta Premier Rachel Notley said the mandated 8.7 percent cuts, some 325,000 barrels per day (bpd), are needed to draw down near-record volumes of crude in storage in Western Canada and bring relief to sagging Canadian crude prices. Once storage volumes return to more normal levels, the ...

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First Published: Wed, December 05 2018. 21:01 IST
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