Canadian National Railway Sees Negative North American Industrial Production, $80 Oil -- Commodity Comment

Canadian National Railway said Monday it sees negative North American industrial production this year and West Texas Intermediate crude oil at $80 a barrel.

2023 key assumptions:

CN has made a number of economic and market assumptions in preparing its 2023 outlook.

The company continues to assume negative North American industrial production in 2023.

For the 2022-23 crop year, the grain crop in Canada was above its three-year average (or in line when excluding the significantly lower 2021-2022 crop year) and the U.S. grain crop was in line with its three-year average. The company continues to assume the 2023-24 grain crops in Canada and the U.S. will be in line with their respective three-year averages (excluding the significantly lower 2021-22 crop year in Canada).

CN assumes continued pricing above rail inflation upon contract renewals.

West Texas crude oil seen at $80 a barrel

CN assumes that in 2023, the value of the Canadian dollar in U.S. currency will be approximately $0.75, and now assumes the average price of West Texas Intermediate crude oil will be approximately $80 per barrel, compared to the Jan. 24 assumption of approximately $75-$80 range per barrel.

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(END) Dow Jones Newswires

April 24, 2023 18:00 ET (22:00 GMT)

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