The trend of rising oil prices will soon come crashing down, says a noted economist.
Peter Hall of Export Development Canada was in Edmonton yesterday to speak on exports and worldwide economies. He expects the price of oil will see a drop as international economic growth continues to slow.
“By the end of the year, we’re thinking that oil prices could conceivably be $70 a barrel,” said Hall. “If you (follow) the global situation to its logical conclusion, that’s what we figure would happen.”
Hall also said he was positive the Canadian dollar would end up in the 80-cent-US range with the bottoming-out of the US dollar and a retreat in commodity prices — oil included — causing the Canadian dollar to drop.
“We believe by the end of this year we’ll be looking at an 89-cent (Canadian) dollar,” he said. “That’s not a scenario we’re running, that’s what we’re saying it will be.”