Maple Leafs: Don’t bet on $70 lasting

Export Development Canada, a federal government financing agency, has nudged its forecast 2009 average price for West Texas Intermediate crude to US$55 a barrel from an earlier $47, rating $70 as unsustainable based on demand fundamentals.

The agency’s chief economist Peter Hall said hints of economic recovery over the past month forced an adjustment in the agency’s target price, but there is still no reason to count on a return to $100 oil in the near future.

He said there is “so much inventory” on the world market that a $70 price is not likely to last over a prolonged period, although demand during the peak driving season is difficult to estimate.

—Gary Park