Alberta readies for more pain

Alberta readies for more pain

Alberta readies for more pain U.S. oil expert warns that things are going to get a lot worse in the second quarter. Time to batten down the hatches?

Tom Kloza, co-founder of Maryland-based Oil Price Information Service, appeared on CNBCs Fast Money Tuesday; he was the bearer of bad news.

According to Kloza, the price of barrel of West Texas Intermediate crude could drop into the $30s by the end of June saying, “I think the cycle has a long way to run out.”

Recently, the CIBC predicted that unemployment in Alberta would jump by more than two percentage points in 2015 due to lower oil prices. This prediction, however, came prior to Kloza’s hint prices could drop significantly below current levels.

“I think Alberta is going to toy with a recession,” said CIBC deputy chief economist Benjamin Tal Tuesday while appearing on CBCs The Exchange with Amanda Lang.

Elaborating on his comment Tal said, “Why? Look at what happened in 2008 – basically the same situation. The economy went down, you see a significant increase in unemployment."

Alberta advisors be warned.