The venerable Canadian oil sands miner, Suncor, just released Q4 results and recorded a $200M+ loss for the quarter. Production costs were $41/Bbl (ouch)
What does that say for the balance of the industry in this low oil price environment? And pass the goat horns to the Alta Govt for jacking royalties and driving another stake into the heart of the industry...talk about killing the goose that lays the golden egg
The US government is printing money like mad (actually quantitative easing, ... "printing money like mad" scares the hell out of people)...and the $USD continues to appreciate.
It's quite a paradox, the USD theoretically has infinite supply (it's just paper and pixels) and rallies...and Oil, a finite resource that is depleting at 9%+/yr according to the IEA, is under the heel of the USD jackboot...this is a trend that HAS to reverse at some point...but the old adage is true...the market can remain irrational longer than one can remain solvent.
- Rinx
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