Canadian (WCS) Oil Price / Job Fallout

[errolanderson]

Western Cdn Select (WCS) bitumen price has now collapsed to $41 per barrel today. Alberta oil discount to WTI is now $28 per barrel, the largest discount since 2013.

Cdn job data released this morning . . . Canada lost 51,000 jobs in August.

This appears to be a tough start to the Cdn economy in August . . . .

[Oliver88]

Notice CDN $ is .76 now.

My biggest concern now is railways not hauling grain this winter due to lack of oil pipelines.
Oil movement on railways seems to be moved at all time highs due to the worlds appetite for more oil.

[blackpowder]

That we're pounding out for $13/barrel. In the highest cost country.
We are tragically stupid.

[farmaholic]

That we're pounding out for $13/barrel. In the highest cost country.
We are tragically stupid.

Is that comment applicable to farmers too?
For some people/companies payments need to be made...so you continue to produce as long as there's a margin, razor thin as it might be. Or well heeled financially strong producers plod along with the same razor thin margins. I don't think it's as easy as "turning production completely off and on". At least farmers have the option of trying to produce different commodities with the same assets.

[fjlip]

So as too many produce what ever, prices crap out.

[farmaholic]

So as too many produce what ever, prices crap out.

A bigger problem for domestic oil could be lack of market access.

[ajl]

Long time CPG shareholder here. Sold out the first time at 44 (good) bought back in at 16 (bad). Sold two rounds of covered calls on it the second round but still not enough to prevent losses overall. Now
Cpg is swirling the bowl too. Given the prediction for higher oil prices for the last four years, it should move higher at some point if doesn't go broke first.

[errolanderson]

Attention Ottawa! . . . Western Cdn Select price (WCS) collapsed to $34.50 per barrel this morning.

U.S. economic data this week has been showing August cracks . . . . inflation data was disappointing suggesting the Fed may postpose rate hikes for now. This will impress the President Trump.

August U.S. retail sales were a bust showing a fairly sharp slowdown from July.

Markets are trying to get jacked over possible U.S./China trade talks. Shortcovering possible . . . .

[bucket]

The good news is gas prices are up...can you imagine the margins federated is making??????

[sawfly1]

just heard in the coffee ,shop , that oil trucking firms here were desperate for drivers and trucks.
maybe if they put the rates back up . they might get some.

with the price drop , maybe they ill not need them anyway