Canadian dollar sinks below 88 cents as Saudis cut oil to $77

[Hack&Lube]

This is a kind of foreign investment that can be unhealthy. It doesn't create long-term jobs, it lines the coffers of real estate developers only, and drives up housing prices for everyone based on speculation.

[Johnny199r]

Originally Posted by Realtor 1

I recently spoke to a new development sales person who has worked in the industry for quite some time. He said he has never seen so many pre sales coming in from China to people who had never seen the site or show suite.
Take it for what its worth as it was 1 persons take but he also mentioned that many of the pre sale purchasers were previously investing in Vancouver.

That's when affordablity of cities really becomes an issue for regular people. There's nothing like having the market heated up with millionaires looking to stash their cash. However, it shouldn't be much of a surprise given that Calgary is a pretty desirable city.

[CubicleGeek]

Originally Posted by Johnny199r

Ive lived in two condo buildings. In both buildings it seemed that 50% of occupants were Asian. I dont know why they flock to condos so much.

Im not sure if that is translating to houses in Alberta too.

Did you live in Chinatown? I'm literally the only Asian tenant in my building.

[Johnny199r]

Originally Posted by CubicleGeek

Did you live in Chinatown? I'm literally the only Asian tenant in my building.

No, two regular condo buildings in Downtown Edmonton.

[gladaki]

Oil was trading at 76.98$ today. will be interesting to see loonie and market response.

[ExiledFlamesFan]

http://www.telegraph.co.uk/finance/n...pec-waits.html

Uh oh. The US shale oil boom has lead to a debt bubble. Hopefully Canadian producers aren't leveraged to this degree.

[andy_521]

Anyone know why gas went up about 8 cents overnight? My station was selling for $99.9 yesterday and $107.9 today. Noticed this at a few stations on my morning commute.

[skudr248]

Speaking of fuel prices... anyone know why the hell diesel is $121.9 right now as the cheapest in the city.. seriously pissed off that it is about 14 cents more than PREMIUM GAS! WTF

[Bob]

Originally Posted by skudr248

Speaking of fuel prices... anyone know why the hell diesel is $121.9 right now as the cheapest in the city.. seriously pissed off that it is about 14 cents more than PREMIUM GAS! WTF

Wasn't diesel traditionally a bit cheaper than gas about 5-6 years ago? That's what I remember, but I also recall some proposed changes (sulfur content?) that was going to affect prices; don't know if that ever happened.

[BigNumbers]

Originally Posted by ExiledFlamesFan

http://www.telegraph.co.uk/finance/n...pec-waits.html

Uh oh. The US shale oil boom has lead to a debt bubble. Hopefully Canadian producers aren't leveraged to this degree.

Canada is much different from an investment standpoint, that is why we weathered the '08 downturn much better than our US brethren. Canadian E&P's are 'in trouble' if they are levered at 2x D/CF.... By contrast, US E&P's aren't torquing their shareholder return enough if they aren't levered at least 2x D/CF.

This is a fundamental difference in risk tolerance between US and CDN investors that has existed for decades. It is part of the reason why our boom bust cycle is generally comparatively softer... When the global (and US) economy is doing well, the US economy is doing better than ours...When the economy is faltering, they take it harder than we do.... So goes the fickle mistress called Leverage.

[skudr248]

Originally Posted by Bob

Wasn't diesel traditionally a bit cheaper than gas about 5-6 years ago? That's what I remember, but I also recall some proposed changes (sulfur content?) that was going to affect prices; don't know if that ever happened.

Yes it was, alot lower actually. I recently bought a diesel, albeit a small VW Golf, paying a lot more to the gas counterparts is frustrating...

[skudr248]

Regardless of my fuel conundrum,

Where do people see the market going, and projects if the price of oil keeps staying on pace like it has done in the last few months... should O&G people be worried? I work in the O&G sector, and management has been pretty hush hush about the situation, and a friend of mine is getting really worried about it and also wondering (he's own's an IT company and he's primary contracts are with small O&G firms).

[nfotiu]

Originally Posted by skudr248

Speaking of fuel prices... anyone know why the hell diesel is $121.9 right now as the cheapest in the city.. seriously pissed off that it is about 14 cents more than PREMIUM GAS! WTF

One thing I've noticed (also drive a vw diesel) is that diesel prices fluctuate a lot more slowly than gas in the US. For some reason they don't go up nearly as fast, or down nearly as fast. One reason they are more expensive in the US is that the states like to collect more taxes on the truckers passing through their state. Kind of sucks for us driving diesel cars though. Cold weather also makes diesel go up in price since diesel and heating oil are produced together.

[ExiledFlamesFan]

Originally Posted by skudr248

Regardless of my fuel conundrum,

Where do people see the market going, and projects if the price of oil keeps staying on pace like it has done in the last few months... should O&G people be worried? I work in the O&G sector, and management has been pretty hush hush about the situation, and a friend of mine is getting really worried about it and also wondering (he's own's an IT company and he's primary contracts are with small O&G firms).

Canadian oil companies are already reporting reduced earnings. After reduced earnings companies will generally cut costs and therefore jobs. Wouldn't be surprised if we see some significant layoffs over the next year if oil settles in the $60-70/barrel range

With the dropping Canadian dollar and reduced fuel costs the manufacturing industry is already picking up. This combined with dropping oil revenues will shift the balance of the Canadian economy back to the norm with the traditional manufacturing centres on Ontario and Quebec doing better.
http://www.biv.com/article/2014/11/b...another-9-ove/

The shift in economic balance will effect inter province migration.

[Azure]

Originally Posted by andy_521

Anyone know why gas went up about 8 cents overnight? My station was selling for $99.9 yesterday and $107.9 today. Noticed this at a few stations on my morning commute.

Low prices probably led to lots of people filling their tank sooner than expected and it caused supply issues. Price goes up to as a result.

[Azure]

Originally Posted by skudr248

Regardless of my fuel conundrum,

Where do people see the market going, and projects if the price of oil keeps staying on pace like it has done in the last few months... should O&G people be worried? I work in the O&G sector, and management has been pretty hush hush about the situation, and a friend of mine is getting really worried about it and also wondering (he's own's an IT company and he's primary contracts are with small O&G firms).

Aren't Canadian oil prices more or less the same that they were 2 years ago?

Perhaps even higher.

[polak]

Need help cheating for my job interview with an finished fuel distribution and marketing company. How does this drop in price effect them? I mean doesn't there small chunk of profit remain the same?

[Hack&Lube]

Originally Posted by skudr248

Regardless of my fuel conundrum,

Where do people see the market going, and projects if the price of oil keeps staying on pace like it has done in the last few months... should O&G people be worried? I work in the O&G sector, and management has been pretty hush hush about the situation, and a friend of mine is getting really worried about it and also wondering (he's own's an IT company and he's primary contracts are with small O&G firms).

I have a big tank and was pretty shocked at nearly $1.22 Diesel. Last time I filled up it was $1.16.

Service companies get their work on contract and should be okay until they run out. When those contracts expire and if the price of oil is still low, they should be worried when they face pressure trying to renew them or to find new business. Their clients will try to renegotiate cheaper rates or put off big expenditures or upgrades.

Most O&G companies are hedged well right now but those will run out as well so budgeting is probably already planning for that and slashing the budget for outsourced things like IT, EPCs, etc. or look for lower bidders than what they currently have.

[gladaki]

read some where that 50$ in 2015 is possible.

[Hot_Flatus]

Originally Posted by Azure

Low prices probably led to lots of people filling their tank sooner than expected and it caused supply issues. Price goes up to as a result.

Fundamentally that makes sense, however, other developed countries around the world might see a price change of 3-4 cents/L over the entire year despite major fluctuations in price per barrel. I'm not convinced every driver in the country ran to the pumps on one day when we all know prices jump nonstop in our boarders.