Like many Albertans, I recently vacationed in B.C.’s beautiful Okanagan, which provided a great reprieve from not only the terrible summer weather we’ve had but also all of the negativity overhanging our province. In particular, I noticed quite the dichotomy between the two provinces, as one can really feel the tremendous boom and positive energy in B.C. — driven primarily from their housing market — compared to the current situation here.
CALGARY – World oil prices continued to plummet Thursday, taking with them the share prices of Canadian energy companies, as one investor warned that domestic producers need to “get their heads out of the sand.”
The TSX Capped Energy Index dropped 2.76% Thursday as the world benchmark price for oil, Brent, fell below US$90 for the first time since 2012 and November contracts for the North American benchmark, West Texas Intermediate, dropped to US$85.19 on the New York Mercantile Exchange.
There is nothing but “Sad News for Peak Oil Disciples” these days, according to the Financial Post.The latest example: Leonardo Maugeri, a fellow in the Geopolitics of Energy Project at the Kennedy School’s Belfer Center for Science and International Affairs—and a long-time critic of Peak Oil analysis—has just published a new report, “Oil: The Next Revolution,” in which he forecasts a sharp increase in world oil production capacity and the risk of an oil price collapse.
Submitted by Gail Tverberg via Our Finite World blog, Most people believe that low oil prices are good for the United States, since the discretionary income of consumers will rise. There is the added benefit that Peak Oil must be far off in the distance, since “Peak Oilers” talked about high oil prices. Thus, low oil prices are viewed as an all around benefit.
The oil rig count is down by over 60% from its peak of 1,609 last October and is down by over 55% year-to-date. The rig count has been a closely watched metric in the crude oil markets over the last few quarters, as investors and traders try to gain a sense of direction in prices by examining supply side factors in the U.S. land drilling markets. We believe that the U.S. oil rig count could continue to face some pressure due to a challenging near-term outlook for crude oil prices and also due to efficiency improvements in the industry.
Just a day after no lesser world-renowned newsletter writer than Dennis Gartman went full bull-tard of crude oil (in $29.95 terms), Goldman Sachs has come out with a "lower for longer" warning about the crude complex noting that the gains have been exacerbated by still large short positioning and the break of key technical levels. Despite the magnitude of this rally, Goldman does not believe that data releases over the past week suggest a change in oil fundamentals.
TOKYO: Asian shares hovered close to 5-1/2-month highs on Thursday as oil prices showed surprising resilience partly on hopes that oil producers may eventually agree on a measure to ease a global glut. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent while Japan's Nikkei gained 2.0 per cent. Wall Street shares ended less than 2 per cent short of a record-high close on Wednesday as a rebound in oil prices added to optimism sparked by a raft of earnings reports. The S&P 500 gained 0.08 per cent to 2,102.4, and up 15 per cent since mid-February.
Long before the price of West Texas Intermediate fell below $60 per barrel for the first time since 2009 on Friday, it became clear that the rout in oil markets would leave no corner of the global economy untouched. The further oil has dropped—there have been only three other occasions in the last four decades when it has fallen so far, so fast—the more investors have obsessed over the shock’s ultimate effects. One key area of debate is the impact on monetary policy.