Part 6/8:
The energy sector has also been under pressure, with oil prices recently dipping below critical thresholds. Rule explained that the current low prices in oil markets signal a slowdown in economic activity, which could lead to a realignment in the sector. He emphasized that the “cure for low prices is low prices,” implying that eventually, reduced investment in oil production due to low margins would lead to a recovery.
He also addressed the Canadian oil and gas market, expressing skepticism about the leadership under Prime Minister Mark Carney, who has a history of opposing fossil fuels. However, Rule believes that the political landscape could shift based on public demand, particularly as economic performance deteriorates.