TSX:HSE.PR.B - Post by User
Post by
Nawaralsaadion Sep 06, 2011 4:21pm
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Post# 19015597
Heavy Oil discount shrink to $7
Heavy Oil discount shrink to $7"Western Canada Select heavy blend for October fetched $7.05a barrel under benchmark West Texas Intermediate, its narrowestmargin in 15 months of Reuters data. That compares with $11.50under WTI in the middle of last week."
https://af.reuters.com/article/commoditiesNews/idAFN1E78512H20110906
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The shrinkage of the discount to $7 from $18 at end of Q2 means that husky has erased the full decline in WTI from Q2, WTI was trading at $96 on June 30th and the the heavy was discounted to $78, currently WTI is trading at $86, while the heavy is trading at $79.
If you combine the narrowing discount on the heavy, the strong refining margins, production growth and weaker Canadian dollar, Husky will deliver a very strong quarter in Q3, thus highlighting one more time the massive disconnect between the stock price and the underlying business strength.
Regards,
Nawa