The Russia-Ukraine war has caused disruptions in agricultural commodity markets, leading to challenges in the energy, agri-food, and automotive sectors. In 2023, Canadian oil and gas exporters are expected to see stronger demand from the US due to reduced output from Mexico and Venezuela. In the long term, the International Energy Agency anticipates no increased demand for fossil fuels, which will push Canadian oil exporters to cut costs and investors are encouraging them to reduce debt and improve their balance sheets. The sector is also set to reduce carbon emissions by 42% by 2030, which may further affect profitability. However, there is optimism that the crisis has accelerated the global transition away from fossil fuels and spurred investment in the cleantech and clean energy sectors. In the agri-food sector, global food prices have increased and the situation has been made worse by the war. Canada has seen a bumper wheat harvest, which will help meet some of the need, and can provide significant amounts of oats, barley, and pulses. In the automotive sector, the global market is suffering from semiconductor shortages and a lack of inventory. Canadian automakers are facing challenges and opportunities as a result. Learn more:
https://www.edc.ca/en/article/edc-three-sectors-to-watch.html
