OTTAWA - A new bank report says soaring oil prices are proving too much of a good thing for Canada, which had benefited as an energy exporter.
Bank of Montreal economist Douglas Porter argues that oil prices at about US$120 or US$130 a barrel have passed the `tipping point' where they become a net drag on the Canadian economy.
Crude was trading at about US$137 on Wednesday morning, down from a record high of just over $145 set last week.
The bank economist says crude's retreat from the record high is a good thing.
He says high oil prices began to sap U.S. and world economic growth in the spring, with serious implications for Canadian industry and consumer confidence.
