Business
Americans set to embrace Russian oil ban – CBC.ca
Are you prepared to pay, literally, out of your own pocket to support Ukraine in its conflict with Russia?
It’s a question being put to Americans as lawmakers examine new penalties that could, indeed, raise the already-high cost of fuel and other goods.
Their answer is a resounding yes, according to new polls.
These surveys come as American politicians consider new plans to punish Russia economically: cancelling oil imports, suspending normal trade relations and installing new tariffs.
A poll released Monday by Quinnipiac said 71 per cent of American respondents said they would support a ban on Russian oil even if it means higher gas prices while just 22 per cent disagreed.
That comes after a Marist survey last week that said 69 per cent of Americans would support sanctions on Russia, even if it meant higher energy prices.
WATCH | Humanitarian crisis deepens in Ukraine:
There’s mounting evidence Russia is trying to batter Ukraine into submission by bombing civilian areas, while efforts to set up safe corridors for people to leave have been unsuccessful. 2:55
Gas prices at highest level in 14 years
The question is no longer hypothetical.
Gas prices have cracked the $4-a-gallon level in the U.S., the highest in 14 years, which is just over $1.35 Cdn a litre, still far lower than what Canadians pay.
The anxiety over rising fuel prices is roiling markets and is showing up online, where Google searches for the price of gas have hit new highs in the U.S. and worldwide.
Those concerns spill across the economy, including into the price of food.
Agricultural economist David Roland-Holst from the University of California at Berkeley said fuel prices are one of several reasons he fears growing global hunger in the coming months.
He told CBC News that what has him worried are disruptions to farming in Ukraine and Russia, which together account for about 30 per cent of global wheat exports, coupled with the inflated cost of fuel
He compared food insecurity to a virus that spreads when markets and trade are disrupted: “In this case, a primary symptom is hunger and disproportionately [affects] the poor.”
Impact could be on food, not goods
In the U.S. Congress, there’s a push to end normal trade relations with Russia and relegate it to the list of countries facing an additional 30 per cent average tariff on various products.
Key congressional committees say they’ve also reached an agreement on legislation that would, if passed, end Russian oil imports to the U.S.
So how much of an impact would all this have on Americans’ wallets?
Russia is a minor exporter to the U.S., the 19th-largest source of imported goods to the U.S., accounting for just one per cent of all U.S. global imports.
That means any new tariffs would affect a limited number of U.S. products, said Chad Bown, a former World Bank senior economist and Obama White House trade official.
But Bown said he’d keep an eye on international food markets, where wheat prices are already approaching record highs.
“If the conflict takes their supply in 2022 off the world market, that could be devastating for global poverty and a number of net food-importing countries,” said Bown, a senior fellow at the Washington-based Peterson Institute for International Economics.
Europe would be more hurt by oil ban than U.S.
When it comes to oil, Russian imports are more important to the United States, but just slightly: they represent about two per cent of the total oil consumed daily by Americans.
Those 400,000 barrels per day in imports, out of the 21 million barrels Americans consume, pale in comparison to the importance of Russian fuel in Europe.
There’s a reason Germany’s chancellor is downplaying talk of a Russian fuel-import ban and saying it would take a while to switch fuel sources.
Russia is the major oil and gas supplier there, supplying one-quarter of the EU’s oil and more than 40 per cent of its natural gas.
Rory Johnston, an energy analyst at Price Street Inc. in Toronto, said a European ban on Russian oil would have a major effect on global oil prices, but a unilateral U.S. ban would not.
James Bushnell , an energy economist at the University of California, concurred.
“A narrow U.S. ban would not have a huge impact,” Bushnell said in an interview with CBC News.
He noted the U.S. cut off imports from Venezuela a few years ago, and it was formerly a more important player than Russia in the American energy market.
Now, the U.S. is talking to Venezuela again about possibly resuming imports.
In fact, the Biden administration is now in the awkward position of trying to extract more oil exports from less-than-friendly governments.
It’s also talking to Iran about lifting sanctions on its oil exports in exchange for limiting its nuclear program. And it’s asking Saudi Arabia to increase production.
The U.S. is on poor terms with the governments of all three countries, with relations ranging from cool to non-existent.
White House spokesperson Jen Psaki confirmed Monday that U.S. delegations have gone to the Middle East and South America to discuss added oil capacity.
Renewed debate on Keystone XL pipeline
Biden’s political opponents are beating up on him for talking to America’s adversaries rather than encouraging oil production closer to home.
And there’s a Canadian angle here: Biden’s decision to cancel the Keystone XL pipeline is now a favourite talking point against him among Republicans.
America can easily replace <a href=”https://twitter.com/hashtag/PutinOil?src=hash&ref_src=twsrc%5Etfw”>#PutinOil</a> by producing more of our own <br><br>Instead the Biden plan is to beg Saudi Arabia to produce more,buy more from a narco terrorist <a href=”https://twitter.com/hashtag/MaduroRegime?src=hash&ref_src=twsrc%5Etfw”>#MaduroRegime</a> in <a href=”https://twitter.com/hashtag/Venezuela?src=hash&ref_src=twsrc%5Etfw”>#Venezuela</a> & cut a deal with the worlds leading state sponsor of terror in <a href=”https://twitter.com/hashtag/Iran?src=hash&ref_src=twsrc%5Etfw”>#Iran</a>
—@marcorubio
Republicans have introduced a long-shot bill in Congress to force construction of the pipeline from Alberta to U.S. refineries.
“It’s almost like we are in this clown show where you get rewarded for saying pretty words and damn the actual outcomes,” one Arizona Republican, David Schweikert, said in Congress a few days ago, referring to the cancellation of Keystone XL and other oil-curbing regulations proposed by Democrats.
“What did you think would happen? … Look at the lunacy that are policies from the United States.”
The White House has brushed off the idea that its own policies are driving up gas prices. After all, Keystone’s cancellation hasn’t stopped a surge in oil imports from Canada through rail and other pipelines.
Those Canadian imports have jumped to record pre-pandemic levels of four million barrels per day. The Biden administration also approved more drilling permits on public land than Trump did his first three years in office.
“Keystone was not an oil field; it’s a pipeline,” Psaki said Monday. “The oil is continuing to flow in – just through other means.”
‘Defending democracy and liberty is never without cost’
With midterm elections eight months away, Biden is trying to keep his polarized country united behind economic sanctions, at a time when gas prices are high and his own popularity is low.
There are no guarantees this unity lasts.
Scratch the surface of those above-mentioned polls, and the threats to American resolve are apparent.
In that Marist survey, for example, support for sanctions dropped 14 points, from 83 per cent to 69 per cent, when respondents were told it could affect gas prices.
The drop was even greater among Republicans, the party favoured to win legislative power this year. When told sanctions could affect gas prices, that support dropped from 79 per cent to a narrow majority of 58 per cent.
Biden began preparing his country for this weeks ago.
Even before the Russian invasion, he made clear that standing up for Ukraine might trigger price-hikes but expressed faith in his country’s willpower.
“The American people understand that defending democracy and liberty is never without cost,” Biden said last month.
Now, we’ll get to test that premise.
WATCH | Trudeau, allies mull further sanctions:
Prime Minister Justin Trudeau met with his British and Dutch counterparts to discuss a humanitarian coalition to address the mounting crisis in Ukraine. It comes as Canada announced new sanctions against 10 Russian individuals on the advice of Alexei Navalny, a jailed Russian opposition leader and activist. 1:56
Premier David Eby is warning real estate investors and speculators that his government is tilting the rules toward families seeking homes as it tightens the rules on short-term rentals.
Eby said Thursday that the rule changes on May 1 will limit short-term rental units to within the principal home of a host, but the move isn’t a ban on platforms such as Airbnb if they aren’t used to create de facto hotels from B.C.’s housing stock.
“If there’s a major event [such as a] Taylor Swift concert, a FIFA-like event and somebody wants to rent out their primary residence and go away for the weekend to avoid the crush of the crowds, they can still do that,” Eby said.
The changes were announced by the government last spring, giving those who own short-term rentals a year to conform.
Eby said the changes will allow both the province and local governments to crack down on speculators.
“If you’re flipping homes, if you’re buying places to do short-term rental, if you’re buying a home to leave it vacant, we have consistently, publicly, repeatedly sent the message: Do not compete with families and individuals that are looking for a place to live with your investment dollars.”
Eby made his comments as the province announced new figures gathered in March that showed more than 19,000 entire homes being listed as short-term rentals.
Housing Minister Ravi Kahlon said the new rules also require short-term rental platforms such as Airbnb to share listed property data with the province and local governments.
He said they expect a significant amount of the homes listed on short-term sites to be back in the long-term rental pool.
“Our view is even if half of those units were to come back onto the market, that is substantial,” Kahlon said. “The cost that it takes to build new housing, when you can get even half of the 19,000 back on the market, that’ll make a substantial difference in our communities.”
He said previous efforts to limit short-term rentals are increasing housing supply in some places.
“We’re seeing, already, in many communities that action happening,” Kahlon said. “We have heard many stories of people finding rentals now because of opportunities when it comes to short-term rentals coming onto the market.”
The new principal residence requirement for short-term rentals will allow local governments to request that a platform remove listings that don’t display a valid business licence.
Valid short-term rental hosts will also be required to display a business licence number on their listings if a licence is required by local government.
The new rules will apply to more than 60 B.C. communities, and Kahlon said a compliance enforcement unit will be phased in to help municipalities deal with rule violations.
Much of the monitoring and enforcement, however, will be conducted online through a new rental data portal that will allow local governments to track and request removal of listings from platforms.
“With this new digital portal, local governments will be able to upload, within moments, listings that they believe are operating illegally within their community,” Kahlon said.
The platform will have five days to remove listings that aren’t following the rules, and if they don’t, they will be fined, he said, noting there’s an up-to-$10,000-a-day-per-listing fine for platforms that don’t co-operate.
“We believe that’s enough of a deterrent for the platforms to co-operate with local governments,” said Kahlon
A website launched Thursday for hosts will allow them to get information about their requirements from the province and their municipality, and their responsibility to notify anyone that’s booked.
“Hosts and platforms have a responsibility to notify anyone that’s booking of all the changes that have been coming,” said Kahlon. “They’ve been notified about this since September or October when the legislation has come in, and they’ve had plenty of time to set up their policies to do that.”
The rules do include some exceptions, including some strata hotels and motels operating before last December being exempt if certain criteria are met.
Eby said the overall message to property investors looking for short-term gains is clear: Build homes that people need and government will do all it can to help expedite the process.
“But if you are standing neck and neck with a family that’s looking for a place to live, and you’re trying to do a speculative investment, [while] they’re looking for a place to live, we are going to tilt the deck every single time towards that family,” Eby said. “And we’re gonna keep doing it.”
Eby also said a positive side-effect of short-term rental regulation has been the re-emergence of hotel construction, with 1,400 rooms “in the development pipeline” in Vancouver.
“Those investors in those hotel rooms weren’t able to make the decision to proceed,” Eby said, citing the previous competition from short-term rentals. “Very clearly, with these regulations in place, there will be visitors to stay in hotel rooms, there will be a market for hotel rooms and they’re making the decision to proceed. This is very good news.”
Victoria-based Property Rights B.C. has filed a lawsuit against the province and city of Victoria to fight the new regulatory system.
It maintains the province overstepped its authority and its lawsuit is focused on preserving the rights to own and operate short-term vacation rentals. The organization is also seeking a delay in enforcement.
Asked about the lawsuit, Eby said he can’t comment on a matter that’s before the courts, “but what I can say is we’re very confident in the legal authority of the province to regulate the housing sector in this way and we’ll make the arguments that are needed in court to address that.”
More communities initially exempt from the province’s new regulations have opted in, including Gabriola Island, Mill Bay/Malahat, Cobble Hill, Cowichan Station/Sahtlam/Glenora, Cowichan Lake South/Skutz Falls, Saltair/Gulf Islands and North Oyster/Diamond. Tofino previously announced it would opt in.
Municipalities with fewer than 10,000 people, resort communities and regional districts are exempt from a requirement restricting short-term rentals to principal residences and either a secondary suite or laneway home/garden suite.
— With files from Carla Wilson and Cindy Harnett
Business
Gas prices see 'largest single-day jump since early 2022': En-Pro International – Yahoo Canada Finance
Gas prices across Canada climbed an average of 9.4 cents per litre of regular fuel over the past seven days, the biggest weekly gain so far in 2024. Cities in Ontario and Quebec booked eye-watering 20 cent-plus gains, while prices were virtually flat for drivers in the Western and Maritime regions.
The average cost per litre of regular gasoline in cities nationwide rose to $1.806 from $1.712 between April 11 and April 18, according to data firm Kalibrate. Chicoutimi, Que. saw the biggest increase at 26.7 cents per litre, followed by Gatineau, Que., and North Bay, Ont. The Greater Toronto Area was hit with widespread gains above 15 cents per litre.
On Thursday afternoon, En-Pro International posted on X that “gas prices spiked 14 cents overnight, the largest single-day jump since early 2022.”
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“The steady build in U.S. crude inventories, combined with the reluctance of the Fed to lower interest rates, which would increase gasoline demand, should neutralize the impact of the conflict in the Middle East,” En-Pro chief petroleum analyst Roger McKnight wrote in a blog post.
“The refining industry will come back to normal levels by mid-June, so supply will balance demand, and prices should fall soon after the U.S. Memorial Day launch of summer.”
Rising gas prices was the top factor behind Statistics Canada’s slightly higher annual inflation reading for March. Year over year, the agency found gasoline prices increased 4.5 per cent last month, following a 0.8 per cent rise in February.
“Higher global prices for crude oil stemmed from supply concerns amid geopolitical conflict and continued voluntary production cuts, leading to higher prices at the pump,” StatCan said on Tuesday.
Follow Yahoo Finance Canada for more weekly gas price updates. Scroll below to find your nearest city.
(All figures in CAD cents)
|
LOCATION |
April 11 |
April 18 |
Price change |
|
Canada Average (V) |
171.2 |
180.6 |
9.4 |
|
WHITEHORSE |
189.9 |
189.9 |
0 |
|
VANCOUVER* |
210.7 |
212.7 |
2 |
|
VICTORIA |
206.2 |
206.9 |
0.7 |
|
PRINCE GEORGE |
169.6 |
169.3 |
-0.3 |
|
KAMLOOPS |
172.5 |
181 |
8.5 |
|
KELOWNA |
174.6 |
175.8 |
1.2 |
|
FORT ST. JOHN |
171.2 |
174.9 |
3.7 |
|
ABBOTSFORD |
194.2 |
198.5 |
4.3 |
|
YELLOWKNIFE |
161.9 |
161.9 |
0 |
|
CALGARY* |
161.2 |
158.8 |
-2.4 |
|
RED DEER |
159 |
159 |
0 |
|
EDMONTON |
154.9 |
153.6 |
-1.3 |
|
LETHBRIDGE |
161.9 |
161.9 |
0 |
|
LLOYDMINSTER |
154.6 |
154.6 |
0 |
|
GRANDE PRAIRIE |
156.9 |
158.7 |
1.8 |
|
REGINA* |
158 |
157.3 |
-0.7 |
|
SASKATOON |
157.4 |
156.9 |
-0.5 |
|
PRINCE ALBERT |
154.6 |
155.8 |
1.2 |
|
MOOSE JAW |
158.7 |
158.7 |
0 |
|
WINNIPEG * |
141.4 |
141.6 |
0.2 |
|
BRANDON |
142.5 |
143.3 |
0.8 |
|
CITY OF TORONTO* |
163.7 |
179.3 |
15.6 |
|
BRAMPTON |
164.3 |
179.6 |
15.3 |
|
ETOBICOKE |
163.4 |
179 |
15.6 |
|
MISSISSAUGA |
162.8 |
179.3 |
16.5 |
|
NORTH YORK |
163.9 |
179.6 |
15.7 |
|
SCARBOROUGH |
163.3 |
179.5 |
16.2 |
|
VAUGHAN/MARKHAM |
163.5 |
179.2 |
15.7 |
|
OTTAWA |
162.4 |
179 |
16.6 |
|
KINGSTON |
162.3 |
179.3 |
17 |
|
PETERBOROUGH |
160.1 |
172.2 |
12.1 |
|
WINDSOR |
162.4 |
177.8 |
15.4 |
|
LONDON |
163.5 |
177.4 |
13.9 |
|
SUDBURY |
167.4 |
185.8 |
18.4 |
|
SAULT STE MARIE |
160.2 |
174.3 |
14.1 |
|
THUNDER BAY |
165.8 |
175.5 |
9.7 |
|
NORTH BAY |
161.5 |
182.6 |
21.1 |
|
TIMMINS |
169.7 |
183.6 |
13.9 |
|
HAMILTON |
161.6 |
178 |
16.4 |
|
ST. CATHARINES |
160.4 |
177.1 |
16.7 |
|
BARRIE |
162.8 |
178.2 |
15.4 |
|
BRANTFORD |
161.1 |
176.2 |
15.1 |
|
GUELPH |
163.4 |
178.4 |
15 |
|
KITCHENER |
163.1 |
179 |
15.9 |
|
OSHAWA |
163.8 |
179.4 |
15.6 |
|
SARNIA |
161.7 |
178.9 |
17.2 |
|
MONTRÉAL* |
173.7 |
190.5 |
16.8 |
|
QUÉBEC |
172.1 |
187.4 |
15.3 |
|
SHERBROOKE |
169.5 |
185.3 |
15.8 |
|
GASPÉ |
172.7 |
189.4 |
16.7 |
|
CHICOUTIMI |
155.1 |
181.8 |
26.7 |
|
RIMOUSKI |
169.4 |
189.4 |
20 |
|
TROIS RIVIÈRES |
169.8 |
186.7 |
16.9 |
|
DRUMMONDVILLE |
166.7 |
183.9 |
17.2 |
|
VAL D’OR |
169.6 |
182.7 |
13.1 |
|
GATINEAU |
152.7 |
175.9 |
23.2 |
|
SAINT JOHN* |
175.1 |
179.1 |
4 |
|
FREDERICTON |
176.6 |
181.7 |
5.1 |
|
MONCTON |
176.8 |
181.9 |
5.1 |
|
BATHURST |
176.8 |
182.3 |
5.5 |
|
EDMUNDSTON |
175.2 |
175.8 |
0.6 |
|
MIRAMICHI |
177.9 |
183.1 |
5.2 |
|
CAMPBELLTON |
175.7 |
179.9 |
4.2 |
|
SUSSEX |
176.2 |
181 |
4.8 |
|
WOODSTOCK |
177.8 |
183.1 |
5.3 |
|
HALIFAX* |
172.1 |
175.4 |
3.3 |
|
SYDNEY |
174.1 |
177.2 |
3.1 |
|
YARMOUTH |
173.2 |
176.3 |
3.1 |
|
TRURO |
173.3 |
176.4 |
3.1 |
|
KENTVILLE |
172.7 |
175.8 |
3.1 |
|
NEW GLASGOW |
173.3 |
176.4 |
3.1 |
|
CHARLOTTETOWN* |
173 |
173 |
0 |
|
ST JOHNS* |
190.4 |
193.9 |
3.5 |
|
GANDER |
192.9 |
196.4 |
3.5 |
|
LABRADOR CITY |
197 |
200.5 |
3.5 |
|
CORNER BROOK |
191.1 |
194.6 |
3.5 |
|
GRAND FALLS |
192.9 |
196.4 |
3.5 |
SOURCE: KALIBRATE • All figures in CAD cents
(*) Denotes markets used in Volume Weighted Canada Average
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
Download the Yahoo Finance app, available for Apple and Android.
Business
RCMP national security team investigating Yellowhead County pipeline rupture: Alberta minister – Global News
Alberta’s minister of forestry and parks said the RCMP national security investigation team is involved in a probe looking into what caused a pipeline to rupture and catch fire west of Edmonton earlier this week.
On Tuesday, a wildfire was sparked following a natural gas pipeline rupture about 40 kilometres northwest of Edson, Alta. The fire has since been deemed under control.
“We have no indication of any kind of cause on that fire yet; the investigation is happening,” Forestry and Parks Minister Todd Loewen said at a wildfire-related news conference Thursday morning. “The national security investigation team of the RCMP are investigating the cause.
“My understanding, since the cause was unknown, that’s standard practice for them to come in on anything that’s unknown.”
RCMP said as of Tuesday, initial reports had shown no signs of foul play.
Global News has reached out to the RCMP for more information. On its website, the RCMP states it has a wide range of national security-related mandates and responsibilities. It says its national security criminal investigations program involves critical infrastructure protection and critical incident management.
Officials say the investigation into what caused the TC Energy pipeline to break could take months or even years.
The Canada Energy Regulator had investigators on site on Wednesday. The Transportation Safety Board of Canada is also investigating the incident.
The rupture sparked a blaze that could be seen for kilometres, sending large flames and plumes of smoke into the air.
More on Science and Tech
No injuries were reported, and officials said the fire was never a threat to any surrounding communities.
“I want to commend the Yellowhead County Fire Department, industry and our wildfire team for the timely manner that this fire was brought under control,” Loewen said Thursday.
“Fast information sharing between all parties facilitated an effective wildfire response.”
The wildfire sparked by the pipeline rupture is located about 28 kilometres northeast of Obed Lake. More than 30 firefighters were expected to be in the area Thursday to continue working on the wildfire.
— with files from The Canadian Press
— more to come…
© 2024 Global News, a division of Corus Entertainment Inc.
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