GREY:TBTEF - Post by User
Post by
pm1231on Dec 05, 2014 11:57am
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Post# 23199647
One More Note
One More NoteAs you've probably seen, the jobs report came out and blew away expectations in the US. By many accounts, the US is growing and the US dollar is strenghening. As you may or may not know, that doesn't bode well for WTI (makes it more expensive relative to other currencies) which will create additional headwinds into the new year on top of the supply issue. On top of this, its now likely the Fed will increase rates by 2H 2015, moving the dollar even higher, and creating more headwinds for WTI.
Of course, it helps Canadian producers since a higher USD acts as a hedge for production, but producers likely lose on realized pricing with lower WTI.