Originally Posted by
ExtraSlow
WTI price curve from bloomberg courtesy Arc Energy Research.
Strong backwardation means the incentive to store oil is gone, this is part of what's driving storage draws worldwide, and those draws are what's underpinning rising prices. Think this is a feedback loop that can keep feeding itself? Will the rising US rig count and production curtail this rally?
Interesting. If we can get WCS to markets by 2020 with say a $7-10 differential, and our dollar at $0.80, who cares if oil hits 80 or higher.
A shitload of money will be made in Alberta again. The problem right now is getting our product to market. Thanks governments.
"The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents... some day the piecing together of dissociated knowledge will open up such terrifying vistas of reality, and of our frightful position therein, that we shall either go mad from the revelation or flee from the light into the peace and safety of a new Dark Age."
-H.P. Lovecraft