The price of oil, despite remaining steady on Friday, is heading for the biggest first half decline in almost two decades.
Oil prices are down about 20 per cent this year despite efforts by the Organization of Petroleum Exporting Countries (OPEC) to reduce production.
The move has sparked debate as to whether prices will continue to fall or rebound toward the US$50 per barrel level.
U.S. West Texas Intermediate (WTI) crude futures traded at US$42.64 a barrel on Friday, down 10 cents.
Meanwhile, published reports say the weak oil price could threaten $19 billion in capital spending by Canadian energy producers.
Calgary-based Peters & Co. Ltd. slashed its price estimates for WTI this week to US$47.68 a barrel for the year. That’s down 7% from an earlier estimate.
Shares of
Cenovus Energy Inc. (
TSX: T.CVE,
NYSE: CVE,
Forum) was among active stocks Friday, easing
easing 1.9% to $9.17.