Canada-Saudi Arabia Feud Could Suck Billions Out Of Canadian Economy

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Canada-Saudi Arabia Feud Could Suck Billions Out Of Canadian Economy Empty Canada-Saudi Arabia Feud Could Suck Billions Out Of Canadian Economy

Post  kelee877 on Wed Aug 08, 2018 6:11 am

CALGARY — Canada can easily replace the oil it imports from Saudi Arabia should relations with the Middle Eastern kingdom deteriorate to the point that trade in crude is halted, says an energy economist.

But this week's trade tension escalation means Canada will be on the sidelines as the Saudis try to diversify their economy away from its dependence on oil and gas, said Omar Allam, a Canadian consultant who specializes in advice on doing business in Saudi Arabia.

Eastern Canadian refineries import about 75,000 to 80,000 barrels per day of Saudi Arabian crude, said Judith Dwarkin, chief economist with RS Energy Group in Calgary, on Tuesday.

That's less than 10 per cent of total imports and amounts to a "drop in the bucket'' compared with the United States, she said, which accounts for two-thirds of imports and could easily cover Saudi's share thanks to growing domestic production.

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Post  kelee877 on Wed Aug 08, 2018 11:33 am

Saudi Arabia Appears To Be Trying To Tank Canadian Asset Prices

An unknown dealer initiated a sell-off on Canadian markets on Tuesday.

Days after it broke off diplomatic relations with Canada, the Saudi government is now selling off the kingdom's Canadian holdings, according to a news report, and it's doing it in a way that's likely designed to push down the market value of Canadian assets.

The Financial Times reported Wednesday that Saudi officials have ordered the country's asset managers to sell off their Canadian assets "no matter the cost" — a clear sign the kingdom is willing to accept losses on the sales.

Saudi holdings in Canada are relatively small, but not insignificant. According to Bloomberg, Saudi Arabia has invested about $6 billion into Canada since 2006.

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Post  kelee877 on Wed Aug 08, 2018 11:34 am

Saudi Arabia sells off Canadian assets as dispute escalates - FT

(Reuters) - Saudi Arabia is selling Canadian assets in an escalating row after Ottawa criticized the arrest of a female activist, the Financial Times reported on Wednesday, citing sources.

The Saudi central bank and state pension funds have instructed their overseas asset managers to dispose of their Canadian equities, bonds and cash holdings "no matter the cost", according to the report. (https://on.ft.com/2M6CSjD)

The sell-off began on Tuesday and underlines how the Saudi government is flexing its financial and political muscle to warn foreign powers against what it regards as interference in its sovereign affairs, the FT said.

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