Canada is the biggest loser among oil producing countries. Its heavy oil/bitumen production is selling at more than a $50 discount to Brent. Why? Blame increasing production, tight pipeline capacity and refineries undergoing maintenance in the Midwest. Refinery capacity is just not growing fast enough!
Western Canada Select at $50 per barrel is so cheap you could actually sell it at the dollar store (3 litres for 1 dollar). Prices are expected to improve in the second half of 2013 as refineries return online. As it stands, Canada is losing some $2.5 billion a month!
Tax loss selling is entering its last days. There’s potentially several buying opportunities out there in certain E&Ps and Oilfield Services companies. However, the problem this year lies in the fiscal cliff fiasco, will the Congress kids find common ground? There are still a few days to find out!
Finally, it’s the holidays AND the world didn’t end according to the Mayan calendar.
So Merry Christmas & Happy Holidays everyone!
News Roundup
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Oil to drift lower in 2013, crash unlikely: poll
Oil industry faced with ‘serious challenge’ as pipelines fill up, TD warns
Iran Talks in Early 2013 to Boost Oil Risk Premium, SocGen Says
Copper, oil targeted by wary investors for 2013
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Delta Airlines and the March of Folly
5 Holiday Shopping Tips to Reduce Stress & Save Time
Are Entrepreneurs Made or Born?
Enjoy it!