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Originally Posted by RM14
Except for the fact that many of the high priced seats are available for any game. I don't think the corporate support has returned yet. And it will take a while. When oil crashed, the cancellations were immediate. Oil is up right now but companies will need at lot longer to get into the level of pre-crash spending that was happening.
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Oil is up but what is reported on the news usually are benchmark crudes like WTI and Brent. WCS (Western Canada Select) trades at a significant discount and the industry here is influenced by the price they can get for what they produce. It has also improved but is still at a significant discount. A crude comparable to WCS is Maya, also heavy and high sulfur. Mexico gets way better price wise than access to tidewater and not having one major customer, the US, which ties Canada’s hands in terms of pricing.
Simple supply and demand. On the supply side, production capacity is increasing and set to exceed pipeline capacity to take it away. Keystone XL still has states to approve, Enbridge line to Superior was scuttled by a judge in Minnesota, and BC wants to deny TransMountain access to tidewater
So a lot of things have to happen to put spending back where it was, and it is not simply that spending has lagged the rebound of oil prices.