Oil Collapse Part Two - Electric Boogaloo
Thanos @ Mon Mar 09, 2020 9:15 am
Coronavirus panic & a production cut deal between Russia and the Saudis falls apart - both factors combine to destroy world oil prices overnight, trigger mass panic selling spree on Wall Street:
https://www.cbc.ca/news/canada/calgary/ ... -1.5490535
$1:
Oil prices dropped dramatically on Monday with North American stock markets briefly halted shortly after opening — and Canadian energy companies were sold off, hard.
As of early Monday, Suncor had lost more than 25 per cent of its value and Cenovus was down by almost half.
North American stock markets were halted shortly after opening on Monday morning as circuit breakers designed to slow down panic selling kicked in within minutes.
The NYSE, Nasdaq and TSX all hit what's known as a level 1 trading halt within minutes of opening. Such a halt automatically suspends all trading on the market for 15 minutes when there's been a decline of more than seven per cent.
A level 2 halt automatically kicks in after a decline of 13 per cent, for another 15 minutes. If the decline hits 20 per cent, a level 3 halt shuts down trading for the rest of the day.
The panic started on Sunday evening after Saudi Arabia kicked off an all-out price war in the oil market, announcing it would be removing any production caps.
That move sent the price of crude tumbling more than 25 per cent, and came on top of existing fears over the coronavirus currently spreading around the world.
West Texas Intermediate crude fell $11.80 US to $29.48 and international benchmark Brent fell $12 to $33.20.
It was the largest single-day drop since the beginning of the Gulf War in 1991.
Prices are falling as Saudi Arabia, Russia and other oil-producing countries argue about how much to cut production in order to prop up prices.
Martin Pelletier, a portfolio manager with Trivest Wealth Council in Calgary, said this is a "nuclear-sized event" for an already-hurting Alberta, and if not contained, the economic malaise could spread to the rest of the country.
"This could be the knock-out punch for Alberta, unfortunately," Pelletier said, adding that some companies might not survive the hit.
"We're going to really need to see some leadership coming out of Ottawa, and I mean both the Bank of Canada and [Prime Minister Justin] Trudeau and the government … This is a crisis; this is a very serious event."
Pelletier said he'd like to see both a large fiscal spending program tailored to impacted provinces and an emergency rate cut.
As of early Monday, Suncor had lost more than 25 per cent of its value and Cenovus was down by almost half.
North American stock markets were halted shortly after opening on Monday morning as circuit breakers designed to slow down panic selling kicked in within minutes.
The NYSE, Nasdaq and TSX all hit what's known as a level 1 trading halt within minutes of opening. Such a halt automatically suspends all trading on the market for 15 minutes when there's been a decline of more than seven per cent.
A level 2 halt automatically kicks in after a decline of 13 per cent, for another 15 minutes. If the decline hits 20 per cent, a level 3 halt shuts down trading for the rest of the day.
The panic started on Sunday evening after Saudi Arabia kicked off an all-out price war in the oil market, announcing it would be removing any production caps.
That move sent the price of crude tumbling more than 25 per cent, and came on top of existing fears over the coronavirus currently spreading around the world.
West Texas Intermediate crude fell $11.80 US to $29.48 and international benchmark Brent fell $12 to $33.20.
It was the largest single-day drop since the beginning of the Gulf War in 1991.
Prices are falling as Saudi Arabia, Russia and other oil-producing countries argue about how much to cut production in order to prop up prices.
Martin Pelletier, a portfolio manager with Trivest Wealth Council in Calgary, said this is a "nuclear-sized event" for an already-hurting Alberta, and if not contained, the economic malaise could spread to the rest of the country.
"This could be the knock-out punch for Alberta, unfortunately," Pelletier said, adding that some companies might not survive the hit.
"We're going to really need to see some leadership coming out of Ottawa, and I mean both the Bank of Canada and [Prime Minister Justin] Trudeau and the government … This is a crisis; this is a very serious event."
Pelletier said he'd like to see both a large fiscal spending program tailored to impacted provinces and an emergency rate cut.
1) gasoline prices in Calgary are already at 90 cents per litre or lower - hopefully they're still above 1.40 in Vancouver
2) word is that the Saudis are also doing this in another attempt to destroy the US shale oil sector
3) expect another major recession in Alberta to start immediately - more job losses, more businesses closing, more mortgage defaults, more suicides, more of all the things that make the Laurentians so completely happy when it occurs out here (as confirmed by all the comments in the CBC article)
To repeat:
$1:
"We're going to really need to see some leadership coming out of Ottawa, and I mean both the Bank of Canada and [Prime Minister Justin] Trudeau and the government … This is a crisis; this is a very serious event."
Pelletier said he'd like to see both a large fiscal spending program tailored to impacted provinces and an emergency rate cut.
Pelletier said he'd like to see both a large fiscal spending program tailored to impacted provinces and an emergency rate cut.
Yeah, right. All in all it's a great day for assholes everywhere.
stratos @ Mon Mar 09, 2020 9:35 am
Gas is dropping here. I actually saw some gas stations over the weekend at less then $2.00 a gallon. Would be AFTER I had filled up at $2.09
BartSimpson @ Mon Mar 09, 2020 10:39 am
Tesla stocks are dropping due to falling oil prices. ![[B-o]](./images/smilies/drinkup.gif "Drink up")
CDN_PATRIOT @ Mon Mar 09, 2020 10:58 am
All I know is that fuel keeps dropping, and that makes me very happy! 
-J.
Robair @ Mon Mar 09, 2020 10:59 am
Alberta is sooo fucked.
Tricks @ Mon Mar 09, 2020 11:02 am
With the new wheels needing premium... might want to fill up.
Robair @ Mon Mar 09, 2020 11:16 am
Another reason to keep driving my $4,000.00 F-150. Performance is pretty much the same no matter the grade.
Also, lower fuel prices means I can probably slap bigger tires on the old pig...
stratos @ Mon Mar 09, 2020 11:27 am
Robair Robair:
Another reason to keep driving my $4,000.00 F-150. Performance is pretty much the same no matter the grade.
Also, lower fuel prices means I can probably slap bigger tires on the old pig...
Also, lower fuel prices means I can probably slap bigger tires on the old pig...
About time for mudding season
Thanos @ Mon Mar 09, 2020 11:30 am
Robair Robair:
Alberta is sooo fucked.
Yup. It's all over now.
https://calgaryherald.com/investing/inv ... 45e0761e6a
$1:
Unfortunately, there isn’t a lot the province can do at this point and it is now up to Ottawa to step up.
THEM help US? Seriously? What kind of drugs is this guy doing to think something like that will ever happen in this country?
BartSimpson @ Mon Mar 09, 2020 11:35 am
Robair Robair:
Alberta is sooo fucked.
Alberta would be fine if the corrupt politicians in Ottawa stopped buying oil from the murderous Saudi regime.
Thanos @ Mon Mar 09, 2020 11:39 am
BartSimpson BartSimpson:
Robair Robair:
Alberta is sooo fucked.
Alberta would be fine if the corrupt politicians in Ottawa stopped buying oil from the murderous Saudi regime.
I would point out that part of the reason the Saudis have done this it to try to give a death-blow to the American shale sector. This, despite the US selling them a trillion dollars in weapons and giving a green-light to their ongoing genocide in Yemen. Your current POTUS being one of the Saudi's best buddies ever doesn't seem to have halted them at all in their attempt to annihilate all competition and corner the entire world market. The day I see Canada or the US put an embargo on all foreign oil coming into our countries to lash back at these evil terrorist bastards is the same day I win the fucking lottery and don't have to worry about this kind of crap ever again.
stratos @ Mon Mar 09, 2020 11:46 am
I mentioned this before. In the 70's I was watching a tv news show, Meet The Nation I think. The had the "Oil Czar" for the US, some cabinet guy say it was the US's policy to be the last nation on Earth to have oil. Mind you this was during the oil crisis. He was responding to the question why the US was not producing/pumping out of the ground more oil.
Nothing sense then, be it Dem's or Rep's has shown me any change to the policy.
Tricks @ Mon Mar 09, 2020 11:49 am
Robair Robair:
Another reason to keep driving my $4,000.00 F-150. Performance is pretty much the same no matter the grade.
Also, lower fuel prices means I can probably slap bigger tires on the old pig...
Also, lower fuel prices means I can probably slap bigger tires on the old pig...
Less about performance for me, more not wanting to invite knocking. Engine is tuned for premium so if I fuck around with regular, I could damage it.
Sunnyways @ Mon Mar 09, 2020 12:33 pm
NL’s finances must be in very deep trouble. On top of this oil shock, we have a massive debt and no young people. I suspect my pension may be taking a cut soon. The Saudis don’t seem like friends right now.
bootlegga @ Mon Mar 09, 2020 12:42 pm
BartSimpson BartSimpson:
Robair Robair:
Alberta is sooo fucked.
Alberta would be fine if the corrupt politicians in Ottawa stopped buying oil from the murderous Saudi regime.
No politician in Canada (or the US for that matter) buys oil from any other country - corporations do that and they do so based on market needs and profitability.
Or are you suggesting oil companies should be nationalized so they only buy oil from Canadian sources?
Something tells me Donnie wouldn't like that too much.