RE:Righand - Explain it to me like im 5 - 2Gladstone22 wrote: Firstly people need to learn the difference between traded in and settled in.
Crude is settled in a variety of currencies pending on the country it is traded in.
Crude is traded in USD.
So you don't need usd at all if you're settling in another currency.
For example. WCS (canadian sweet crude) often trades at a spread to WTI (sweet cushing) and settles in canadian dollars which is its price in US either converted to CAD using the bank of Canada noon day rate average or the noon day rate month average. (This also avoids the bips the banks charge to convert).
I think you have a much better grasp on reality than Lucas.
BBI sells all of their condensate to Canadian buyers, so is obviously sold in Canadian dollars, not US.
Their gas is sold through the midstreamers, and while natural gas prices in Canada are affected by the US market, it is also generally priced in Canadian dollars. This is glaringly obvious as the discount to Henry Hub gas prices is very volatile. AECO, Empress, and Station 2 natural gas prices are all quoted in C$. Only the Dawn hub in Ontario is priced in US$.
Lucas, hopefully you are smart enough to listen to those who know more than you.