GREY:BNPUF - Post by User
Comment by
Alphaseeker1984on Nov 09, 2018 4:02pm
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Post# 28952857
RE:52 Week High
RE:52 Week High3 main reasons IMO - tax loss selling, lack of belief that nat gas prices will stay up for long enough period of time, and lack of belief that Canada can get any infrastrucure built. The constant narrative is that production will outstrip demand in the long run.
Tax loss selling will abate in the next 3-4 weeks. However the other two issues are more mid-term risks. Production out of the Permian, Utica and Marcellus is anticipated to be significant enough to weigh down gas prices despite the odd spike due to harsher weather and low inventory. There is not enough discipline on the producer side due to debt servicing requirements, so they overproduce despite the low gas prices.
With regards to infrastructure, it is getting harder in to get major pipelines built in NA and especially in CDN.