$50 oil, now what?

[dirtsniffer]

YYYYAAAÀSSSSSSSSSS

[Darkane]

I like where Oil is headed. Doesn't seem like there's a glut In the USA lately. Five straight weeks of draw on the Tanks.

One of the inventory stations (Cushing I think) is below 500/mbbl's now.

[Kijho]

[Mitsu3000gt]

You can hedge CAL 2017 at over $70 CAD/BBL now, I think a decent amount of companies should be in the money around there.

[Buster]

Originally posted by kaput
I don't see Canada attracting much investment at any oil price until the political and regulatory situation reverses. It's become a high cost high risk country for the industry. We can't even get pipelines built across our own provincial borders. The stupidity surrounding Energy East is humiliating. Our track record of paralysis by analysis and arbitrary rules that tend to change during the review process prevents any sort of decision (for or against) from being made. Why would anyone commit hundreds of millions of dollars over an unknown number of years to something so ambiguous? And in the rare case that a project does get approved, it doesn't seem to mean much anyway - look at Northern Gateway. It's no wonder Canadian companies are starting to look elsewhere for investment opportunities.

Meanwhile, the US has gone ahead with substantial pipeline infrastructure, deep water ports, crude export terminals, and a number of LNG terminals. We watched them eat our lunch and then gave them our bus fare before they could ask for it. What's going to happen next if Donald Trump wins? I'm sure him and Trudeau/Notley will get along real well. I wonder what nickname he will adopt. Cute Justin?

It's not worth complaining about Notley or Trudeau.

The Canadian electorate is really stupid...which is the ultimate Achilles heel of this country.

American voters are stupid, too...but they tend to know how to prevent their stupidity from blowing their economic brains out. Canadians love the self-harm.

[freshprince1]

This is a more stable move towards $50 than the one back in May, but I still don't think it's here to stay (I'd be happily proved wrong!). US production is down. And to all those moronic media reporters pushing the "OPEC is meeting to discuss a production decrease" you need to stop touting that line. It's all spin...OPEC has mentioned they'll likely reduce production by what, 500M bpd? But that is right in line with their seasonal decrease anyways...so they're just using that as a way to come out looking like heroes.

China's demand is still lower than expected/needed. World market variables are not bringing back stable $65 oil anytime soon....which really sucks because I'd be making a lot more money if it did. at $40 the big Oilsands companies are sustaining operations, at $60 they're making a little money. $50 oil will not unleash any drastic uptick in investment....unfortunately. But hey...I'll take any gradual upward movement over downward any day of the week!!

[revelations]

Were overdue for a "panic" event in OG to send the price of crude up.

What happened to every time a mouse farted in the South to the price of oil going up 5%? Now we have hurricanes in Florida and price of OG hasnt moved much at all.


Personally, I feel that Brent will find 60$ in a month or two.

[roopi]

Hurricane is not in the Gulf it's on the east coast.

[Mitsu3000gt]

AECO over $3.00

[Darkane]

Originally posted by Mitsu3000gt
You can hedge CAL 2017 at over $70 CAD/BBL now, I think a decent amount of companies should be in the money around there.

Pretty much EVERY producer is in the money now. It's interesting this week price of oil gained on par with the strengthening of the USD. Generally they rise and fall opposite of each other.

$50 oil, check out our exchange rate. Money is being made.

[HiTempguy1]

Originally posted by Darkane

$50 oil, check out our exchange rate. Money is being made.

Yep. Anyone who says otherwise is full of shit.

[Aleks]

Originally posted by Mitsu3000gt

AECO over $3.00

[Mitsu3000gt]

Originally posted by Aleks

Haha it's sad that that's a good price right now - I remember trading gas at $12/GJ

[Gestalt]

There's almost a billion barrels in fake NYMEX contracts creating phoney demand, trying to prop the price up.

Oil is the dirtiest game on the planet. Ok, second. Weapons are the first.

Oil prices aren't going anywhere for a long time. Until the weapons guys and the oil guys corroborate, and another evil threat is discovered, somewhere far away.

[pheoxs]

Originally posted by Gestalt
There's almost a billion barrels in fake NYMEX contracts creating phoney demand, trying to prop the price up.

Care to post a source?

[Gestalt]

Read it earlier. Google Phil's Stock World.

Also, note that China is about finished with topping up its increased strategic reserve, which was sucking 1.2 million barrels per day. So even if Opec comes through with the 700k cut, they are 500k short of just staying the same.

[ExtraSlow]

Originally posted by Mitsu3000gt
AECO over $3.00

Man, my life and my fortunes have always been much more heavily tied to the price of gas than oil, this is great news.
A slow march for gas upwards to even $4.00 would do wonders for me, more than oil at $70

[ianmcc]

Originally posted by pheoxs


Care to post a source?

http://investmentwatchblog.com/non-f...mex-contracts/

[Gestalt]

Originally posted by ianmcc


http://investmentwatchblog.com/non-f...mex-contracts/

Even though that is Phil's article preprinted, to save you the pain of that site, Phil is worth following directly.

http://www.philstockworld.com/2016/1...mex-contracts/

[Sugarphreak]

..