Ya. WCS (Western Canadian select) the oil my company produces is priced under $10 right now. Most Canadian oil companies lost 2/3 of their value in the last week and half.wait a second (noticed through )
WTI Crude • 22.74 -4.59 -16.79% Brent Crude • 27.81 -2.60 -8.55%
now noticed the story ofwait a second (noticed through )
WTI Crude • 22.74 -4.59 -16.79% Brent Crude • 27.81 -2.60 -8.55%
now looked up what was that politically correct expression
but oops Dow had been like 2k points higher thenToday at 3:00 PM
now I see the official for what's going on is "highly unusual disruptions", as in
Which honestly is not that bad. Stock market is all paper money and derivatives. But the debt bubble got worse, that's what I'm worried about.
@GatekeeperYa. WCS (Western Canadian select) the oil my company produces is priced under $10 right now. Most Canadian oil companies lost 2/3 of their value in the last week and half.
Someone should tell the Saudis to stop screwing with the world, they tried in 2014, didn't work. Now trying again.
Only buy integrated companies, so for Canada it is Imperial Oil or Suncor or husky. Full disclosure, I work for Suncor and obviously own Suncor shares.@Gatekeeper
If I were to buy oil futures, which kind should I do?
Yes and no. The problem with the American economy is FIRE ( finance, insurance, real estate) which is counted towards the economy. But the real economy is much smaller (primary, secondary industries). FIRE doesn't produce anything other than speculation. After this is over, primary and secondary will come bounce back, because people need to eat, things need to be made (so mining, forestry, etc will be fine). People don't need to buy a fourth house...What you say is true, BUT! my friend, I think you underestimate the effect. It is bad, very very bad!
1st/ why is the stock going down? Because analysit believe the FUTURE prospect is dim! So they are betting on the stock wont return the returns they are expecting. And if they are right, then the firms is really not making any money leading to less profit, therefore employment, tax revenue. Etc.
2/ firms going to find it hard to repay any loan and interest payments with reduced peofits, leading to cut backs, less employment, tax receipts. Etc.
3/ firms gearings gone up drastically, as liabilities increases, and asset value plunged, which makes it harder and mire costly to borrow money to cover any cash short fall.(Boeing is a great exampl). All this leading to lenders trying to recoup their money forcing firms into bankruptcy (how ironic, ust like most of Trump's businesses).
So I could go on, but you get picture, this is why I keep telling my students, why, in a capitalist system, all CEO have one eye on the stock value of their shares, (which is why also Trump set his stores by), and why they concentrate their efforts in keeping up those value (not really what we employ CEO for).
Which is also why Trump is now pumping money into the economy by big give away. Completely unheard of, even during the great recession and depression.
Only buy integrated companies, so for Canada it is Imperial Oil or Suncor or husky. Full disclosure, I work for Suncor and obviously own Suncor shares.
In an oil crash, the downstream side of the business (refineries) will make a ton of profit vs losses in the upstream side (oil production). That's why you won't see gas prices crash to 40 cents a liter.
If buy American companies, get ExxonMobil. I used to work for ExxonMobil's Canadian affiliate (Imperial oil). Chevron sold most of their downstream assets awhile ago. You can also buy pure downstream plays, like Tesoro oil.