Oil & Gas Index continued to gain ground in August, the bank reported
TORONTO—Scotiabank’s Commodity Price Index inched down by -0.1 percent month-over-month (m/m) in August, the bank reported. However, the All Items Index has edged up so far this year (1.2 percent over the previous eight months of 2012), largely reflecting a rebound in the Oil & Gas Index from last December’s low as well as a strong cyclical recovery in building material prices.
The Oil & Gas Index continued to gain ground in August, 0.4 percent m/m, 24 percent year-over-year (yr/yr).
“Slight gains in Alberta light and heavy crude oil and a big increase in propane prices at both Edmonton and Sarnia offset softer natural gas export prices,” said Patricia Mohr, Scotiabank’s vice-president of economics and commodity market specialist. “Western Canadian Select heavy oil (WCS) at Hardisty, Alberta climbed to US$90.90 per barrel—the highest level since mid-2008, when WTI oil prices were at a record (US$147.90)—just prior to the 2008-09 Great Recession. This price level is closer to the true, inherent value of heavy crude oil in international markets compared with the heavily discounted prices of only US$62.37 in 2013:Q1.”
Highlights in the report include: