I have a story for you …
In 2007 I was just out of University. I graduated with a Commerce degree from Saint Mary’s University (different than our local St. Mary’s University FYI).
Back in those days I was hard up for cash. I worked at a local natural food company in sales. The company had a great following from their booth at the Calgary Farmers Market. I was to expand various product lines, through distributors and direct to retail, to help grow the company. And we did!
From that time what I also remember was the ramp up of gasoline prices in Calgary. Typically, people in Calgary benefit from higher oil prices, which drive gasoline prices, so the income/cost is offset. For me, at that time, I did not enjoy that benefit. Not even close. And I felt the pinch. I distinctly remember changing my driving habits, turning down poker games in South Calgary, not going mountain biking etc. It was unfortunate.
Then the Financial Crisis came in 2008. And it turned out that being in the Natural Foods industry was relatively insulated from this crisis. Gasoline prices came down. Way down. I think they bottomed out in late 2008/2009 at $0.490/L.
That same Winter I drove to Edmonton to pick up my new dog. His name was Nash, a black and white English Springer Spaniel. My Aunt bread some dogs in Brandon MB. Nash was the last one to be taken …Side note: I quickly figured out why. He had a very intense energy about him. The good thing was, so did I. I recall driving to Edmonton without hesitation because fuel prices were so low.
(Picture of my first dog Nash the Springer!)
Anyway, I remember feeling my pocket book swell because I could fuel my vehicle for a 1/4 the price relative to four months prior.
Today, we don’t have as wild of swing of gasoline prices from the peak of $1.30/L down to $0.49/L. But we do have smaller movements down as of late. And this helps push Canada’s inflation lower.
The price of oil is a pretty strong leading indicator for Canada’s economy. Just look at the tone of the Bank of Canada’s interest rate meeting from October 2018 to January 2019 (my comments from October’s Bank meeting). I thought that meeting was a stern warning of higher rates to come. So what happened since then? Oil prices fell. And the tone of the January Bank of Canada meeting changed. Drastically.
Canada’s inflation is 2%. On target and within BoC guidelines. The price of West Texas Intermediate oil is $52/barrell. Western Canadian Select (AB’s primary oil) is priced at $43/barrell. I’ll keep everyone updated on the movement in price of this commodity.
Thanks for reading!
I look forward to helping advise you throughout your Mortgage term. If there is opportunity for you to save money, I want to help facilitate those changes with you
Cheers,
Chad Moore
