RE:Nova AECO C price chartI’m reading your posts Mayorkgh, but are you reading mine?
IMHO this is not about where we are now, (the abysmal AECO spot) but where we are going. The AECO is noise, -most definitely not the signal!
Imagine if you will, an improvement in energy prices from the bottom up. Yes, where NG prices strengthen first, -and over time, all the others to follow suit in sequential order, (ethane next) and lastly crude!!! Wouldn’t that be a better? We’ve experienced just the opposite to that scenario in these last so many years in North America. But my suggestion cannot be so wide of the mark given the current rig count stats and the manipulated oil price during this same period that kept crude artificially high and for much longer than it should have, and resulted in these inequities. The growth and impact of shale technology in this same time period was the input that toppled the oil price along with the impending reality of Iranian sanctions being lifted.
No person or entity is infallible. The Saudis, caught asleep at the switch misread the tea leaves (shale), -and fell right off the log. In fairness they’ve leapt from their slumber and introduced a severe dose of rationalization to energy markets. Fortunately Doha did not interfere with this process and in time the cure will work its way through the markets and that’s a good thing.