Strong dollar won’t help province with rising price of oil

The strong Canadian dollar is offsetting any gains Saskatchewan is making through the rising price of oil.

When both are strong, as they are currently, with the loonie at time going above parity with the US greenback, the treasury loses out.

Randy Burton with the finance ministry confirms the province makes about $18 million a year with a high price of a barrel of oil, but a stronger loonie won't help that.

“Oil is priced in US dollars so a stronger Canadian dollar reduces our take on the oil front,” said Burton.

And the province is out about $15 million, drastically reducing what the treasury sees.

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Burton admits the ideal situation is to have stability in the markets so the forecasters can make some safer predictions.

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