MNI DATA PREVIEW: Higher Oil Prices To Narrow Canada Trade Gap

By Yali N'Diaye

     WASHINGTON (MNI) - After reaching a record C$4.6 billion in December, the

merchandise trade gap is expected to narrow to C$3.5 billion in January

according to MNI survey of analysts. 

     The goods balance has been in deficit for all of 2018, except for the month

of July.

     --OIL PRICE REBOUND

     The 3.8% drop in exports in December was led by energy, as energy products

sales abroad plunged 21.7%. The rebound in oil prices should unwind at least

part of the December decline.

     --REFINERY IMPORTS SEEN DOWN

     Refined petroleum energy boosted imports in December due to maintenance and

turnaround work as some Canadian refineries that increased demand for foreign

petroleum products. January should see a reverse, bringing down energy product

imports.

     --ALBERTA PRODUCTION CUTS

     Mandatory production cuts that were implemented in Alberta to counter lower

oil prices should have a negative impact on exports. The focus should be on

non-energy exports given all the oil dynamics at play.

--MNI Ottawa Bureau; +1 613 869-0916; email: yali.ndiaye@marketnews.com

[TOPICS: M$C$$$]