As expected Alberta Premier Rachel Notley has told oil companies in the Province they need to cut back on their output by 8.7 per cent as of next month.

The move is in response to the widening gap between the price Alberta oil fetches and the North American bench mark price, which is around $40 U.S.

The reduction will help clear out some of the current stockpile and raise the price of Alberta crude oil.

The drop will amount to about 325 thousand barrels a day.

Notley says this is a short term measure.

UCP Leader Jason Kenney supports the plan, but says the Alberta NDP need to admit they played a role in letting the price differential get so high in the first place.

 

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