Crude oil impact on Canada

[errolanderson]

Something smells foul for Canada's economy.

WTI crude broke $90 per barrel this morning. And foreign investment in Canada's oilpatch is now drying up.

International energy giants appear frustrated with west coast politics stalling LNG export terminal development. Canada (IMO) is way behind globally in the development of natural gas export.

A major player pulled out of a Kitimat LNG project. Also, major oilsand players have cut investments.

(IMO) there is a clear trend here. Energy development is the driver of Canada's economy and this is a definite slowdown risk for our economy.

My fear is Canada is already in-recession, gov't data has yet to catch up.

[bucket]

That should justify having 6 dollar canola soon.

Gas at the pumps doesn't change.

[wmoebis]

Yes it does Bucket it jumped from $1.16 to $1.21 yesterday in Calgary.

[sk_wheatking]

What a ****ing Joke.


Low crude price won't bring pump relief in Sask.







Refinery capacity main issue, says expert



Reported by Courtney Markewich

First Posted: Oct 1, 2014 4:20pm | Last Updated: Oct 1, 2014 5:26pm

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A low price for crude oil won't mean a low price for people fueling up their vehicles in Saskatchewan.

On Wednesday, some pessimistic reports emerged as oil prices hit a two-year low, with WTI (West Texas Intermediate) dropping 13 per cent over the quarter and Brant losing 17 per cent.

Enrpo gas price analyst Roger McKnight explained that while pump prices usually reflect crude prices, that likely won't happen this time.

"The next two months are going to be a bit strange because I think your prices are not going to drop as much as crude oil," McKnight said.

"We have a situation with gas supply in the United States which is getting tighter and tighter is going to be reflected right across the United States, Western Canada as well as Eastern Canada."

A large part of the situation in the U.S. has been caused by unplanned shutdowns of a number of refineries. Severe refinery problems have hit the U.S. Gulf Coast, which McKnight explained is driving up the future price of gasoline, and two major Canadian refineries had unexpected stoppages.

"The crude supply in North America is wonderful. As a matter of fact, they don't know what to do with it and Americans are trying to figure out whether to export it or not. So it's not a question of crude supply, it's not a question of crude price. It's a question of refinery capacity which has gone off the wire."

McKnight pointed out that the falling Canadian dollar will result in higher gas prices as well.

[errolanderson]

if this scenario play outs, on-the- surface appears quite bearish for our spot loonie.

not sure what will pull the U.S. dollar back to earth. american buck might be chronically high for a long time.

[bucket]

A depressed loonie should move our grain prices higher. Nope that's not happening either.

[wmoebis]

Do you think the price of bread etc. will jump because of lower quality this year?

[BreadWinner]

Crude oil is going down due to over supply, US and Canada crude supplies are building up due to over production. Supply and demand that's the name of the game. The more oil produced the lower the price. It should lower the dollar as well. Maybe this will help out the rail issues as well.

[bucket]

Wmoebis

Yes any excuse will work.

Lots of news about rising grain prices with the grocery store as a backdrop a few years back.

Not a peep now about lower grain prices and food prices not moving down


I fault our farm group reps for not pushing this.

[furrowtickler]

Driving down the price of oil is about the only way to control Putin right now - I know its out there but oil below $80 puts a world of hurt on Putin and his cash flows.

[bucket]

So this has really nothing to do with supply demand it's political.

Canada would be just collateral damage.

Meanwhile .......

[errolanderson]

OPEC is swimming in oil right now as the U.S. approaches becoming the #1 producer in the world (exceeding Saudi Arabia).

Middle East is in trouble (IMO) and their warring now has little impact on global prices.

[furrowtickler]

The U.S. has been setting this thing up for 4 years.

[riders2010]

The reason they killed khadafi wasn t because he was a brutal inhumane person, he gave gasoline to everyone for pennies, because of this their economy was going to boom, could you imagine if we had the cheapest fuel in the world here every industry would want to invest here.

[bucket]

Those countries are booming because they have to keep rebuilding what they blow up.

Been going on for 1000s of years. Don't understand why there is any benefit for canada to get involved.