Oil has been artificially kept high by OPEC and the world has suffered enough. So what if oil is a vital industry in Canada. The market -whether they are manipulated or not - will decide who can survive.
Oil is more vital to Saudis than to Canada. Saudis wants to see $200 oil too. 10 of the 12 OPEC member have trouble with oil at the current level. Don't you think they want a higher price too? Many members need at $100.
How many barrels per day should OPEC cut from the current 30 million barrels per day to push price back to $100? 2 million? 5 million? And how long will it take for Canadian oil sands and USA Shale oil to catch up fill that void.
No one can see how this will end. It may be a month or a year...
Canada and most countries import oil and/or petroleum from Saudi Arabia
Saudi Arabia has the largest amount of oil in the world
Canadian are benefiting from the lower oil price.
OPEC is an Oligopoly
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers
OPEC made the OIL SAND viable by keep oil price high.
Without OPEC, oil may be in the $40 or lower range. At that price, ll stop.
If oil price stay below $70 for an extended period, certain oil sand operations will halt.
Many existing USA shale oil production will face serious problem but more new lower cost shale oil project are coming. The battle will be between oil sand and shale oil. The one with a lower cost will survive.
OPEC has no control over its members. Instead of 30 million barrels a day, cheating will push it to over that and further depress the price.
Hard to believe US govt and Saudis can reach such an agreement.
The price war will continue until the new increase demand can absorp all the new supplies or OPEC can unify again and cut enough production to push price up again.
The slowing Chinese economy (7% growth is predicted instead of 7.3%) , problem in Euro zone and Japan are not helping.
Oil may have a 6 month volitility. I don't see how Suncor or many oil companies can maintain its cash flow as predicted a few months ago. They must come out to change their capital spending projection, halt current projects,lower income , cut dividends and cut staff. Any of such movement is a signal to cash flow issue.
I have sold all my SU shares in June. Not at the highest price but a lot higher than yesterday's 52week low.
I don't see how SU can go back to $40 within the next 52 weeks.
Sell your shares. I have studied suncor and have determined it is not profitable.
I randomly visit chatrooms ever since they cancelled my favorite trivia show Jeopardy.
Thank God they still have Big Bang Theory, I would love to fu897ck Sheldon.
Did I tell you I am bisexual?
I am also superior to you, admire my intelligence.
Sentiment: Strong Sell
Think about it... ISIS is the worst thing that could happen to the Royal Family.... they don`t have the man power to fight them themselves but they do have the US to fight their wars... But we just spent 10 yrs and nearly busted our economy... So how do the Saudis get us to fight ISIS.. By promising to give us lower oil prices for a few years as down payment....
In the interim -- they also get to do themselves a favor and slow down the shale oil industries.... and undermine all the new tech coming out for cars to get higher mpg... hydrogen, hybrids, electric, etc...
Win Win for the Saudis and for Obama admin as the economy gets a major tax break up for the next couple years.... and the oil patch wasn`t his friend anyway... was it... So he`s probably more than willing to let them have a little hurt for a time...
Meanwhile the rest of the country -- especially the middle and lower class gets to have a little party on cheap oil ....
he's being generous on that target price you know? word on the street is this #$%$ is going to 10 bucks. dumped all my canadian oil and bank stocks last quarter when the chite hit the fan with russia. bought 100000 shares of BAC and C. good luck with this garbage.
Sentiment: Strong Sell