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

[gladaki]

what will be effect on
calgary job market?. Goldman sach predicted that oil will go below 73$ in next few months.

[lorenavedon]

It should send house prices up another %20 next year. Nothing can stop the insanity in the markets.

[killer_carlson]

timing sucks as I am in Disneyland right now.

[burn_this_city]

There shouldn't be a huge effect. I've said it before and I'll say it again. The Canadian dollar dropped and we sell oil in USD and the differential for bitumen against WTI has shrunk immensely. We're getting more now per barrel than we were same time last year.

[burn_this_city]

Originally Posted by killer_carlson

timing sucks as I am in Disneyland right now.

For a laugh ask Disney what the exchange rate at the park is. When the dollar was close to par they were offering us less than $0.85.

[Red]

Originally Posted by burn_this_city

There shouldn't be a huge effect. I've said it before and I'll say it again. The Canadian dollar dropped and we sell oil in USD and the differential for bitumen against WTI has shrunk immensely. We're getting more now per barrel than we were same time last year.

CDN dollar is down 30%?
How are the big player's stocks holding up?
Are we really getting more for our oil than last year? Any specifics because I am not in the industry so I don't know.

[terminator]

Originally Posted by Red

CDN dollar is down 30%?
How are the big player's stocks holding up?
Are we really getting more for our oil than last year? Any specifics because I am not in the industry so I don't know.

Canadian oil is sold as Western Canadian Selecet (WSC) due to it generally being "heavier" in nature then WTI. WSC priced off WTI which is priced of the Brent. WSC prices have a differential with that off WTI, for example end of 2012 WTI was trading north of $90 a barrel and we in Alberta were netting $50-65 a barrel due to this differential. Remember that CAD and USD were at par.

Today the differential has shrunk to $17 canadian and at $80 USD a barrel that means we are netting ~$71-$74 CAD/bbl.

[ranchlandsselling]

Originally Posted by terminator

Canadian oil is sold as Western Canadian Selecet (WSC) due to it generally being "heavier" in nature then WTI. WSC priced off WTI which is priced of the Brent. WSC prices have a differential with that off WTI, for example end of 2012 WTI was trading north of $90 a barrel and we in Alberta were netting $50-65 a barrel due to this differential. Remember that CAD and USD were at par.

Today the differential has shrunk to $17 canadian and at $80 USD a barrel that means we are netting ~$71-$74 CAD/bbl.

That's also cherrypicking the worst possible differential, which was short lived. It was still large for awhile both before and after that date - but maybe an average annual price for 2011, 2012, 2013, compared to today's price would be a bit better.

[calf]

Originally Posted by burn_this_city

There shouldn't be a huge effect. I've said it before and I'll say it again. The Canadian dollar dropped and we sell oil in USD and the differential for bitumen against WTI has shrunk immensely. We're getting more now per barrel than we were same time last year.

For current production, yes. Any company that is building any sort of infrastructure or making major purchases in USD is going to/has seen costs go up big time, which might delay some major work or growth activity going on these days.

[terminator]

Originally Posted by ranchlandsselling

That's also cherrypicking the worst possible differential, which was short lived. It was still large for awhile both before and after that date - but maybe an average annual price for 2011, 2012, 2013, compared to today's price would be a bit better.

I used a benchmark I knew of the top of my head, I don't have time to hunt down annual averages. If you post them, i will gladly rewrite my post.

[GreenLantern]

Originally Posted by killer_carlson

timing sucks as I am in Disneyland right now.

Just get on Radiator Springs Racer and everything will be alright.

[ranchlandsselling]

Originally Posted by terminator

I used a benchmark I knew of the top of my head, I don't have time to hunt down annual averages. If you post them, i will gladly rewrite my post.

Lol, yeah - same benchmark I used off the top of my head when easing concerns of my bosses. I realized my cherrypicking at the time and mentioned it - but also don't have time to do the same.

I wasn't suggesting you do it - was just suggesting what would be a more realistic comparison.

[ExiledFlamesFan]

The drop in oil is already having an effect on the Canadian economy. No doubt Alberta will be hardest hit.
http://m.theglobeandmail.com/report-...service=mobile

The current situation is looking very similar to the 1980s oil glut. The Saudis were losing market share and released more of their oil at lower prices to get back some revenue, pushing the price of oil down even further.

[agulati]

The oil price will find a new stable price because of the reserves found in the states. I do not see the long term viability for Canadian crude in the global market for that reason. Atleast not in terms of new development.

[Temporary_User]

Originally Posted by burn_this_city

For a laugh ask Disney what the exchange rate at the park is. When the dollar was close to par they were offering us less than $0.85.

Why would you try and use Canadian dollars in Disney?
Do you think all the Mexican tourists come and try to use their pesos there?
What about all the Chinese tourists and their Yen?

.85 is pretty good. It isn't free for them to then convert your Canadian dollar into a U.S. dollar.

[Ducay]

As expected, monstrous massacre on the markets today for Energy stocks. Normally I'd be in buy mode, but we may not have it bottom. Can hardly bare to look at my portfolio today

[Flamenspiel]

Well, i think its time to close the "...market going crazy..." thread.

[burn_this_city]

Originally Posted by Temporary_User

Why would you try and use Canadian dollars in Disney?
Do you think all the Mexican tourists come and try to use their pesos there?
What about all the Chinese tourists and their Yen?

.85 is pretty good. It isn't free for them to then convert your Canadian dollar into a U.S. dollar.

This was three years ago and we tried to convert a couple hundred at guest services. They tried to take a 15% cut at the time on every dollar. Spare me the you're an idiot thing, god forbid a tourist would try and convert cash at guest services when they advertised that service.

[Clever_Iggy]

Originally Posted by burn_this_city

This was three years ago and we tried to convert a couple hundred at guest services. They tried to take a 15% cut at the time on every dollar. Spare me the you're an idiot thing, god forbid a tourist would try and convert cash at guest services when they advertised that service.

It's not as though they refused service...

I've been at US banks trying to convert CDN to US and they usually give me ~.90/1.00 when the dollars were basically on par.

[burn_this_city]

Originally Posted by Clever_Iggy

It's not as though they refused service...

I've been at US banks trying to convert CDN to US and they usually give me ~.90/1.00 when the dollars were basically on par.

Most US banks won't even do it unless you have an account there.