Trends / Oil Price for SGYGood morning,
i few point that that I would like to pass on that I think will ensure sastainabilty and/or continued increase in the price of oil SGY receives for it’s product:
1. WCS differentials are starting to increase, som may think this is a bad thing, however provided it doesn’t go to far this is actually a positive sign. Current spot differential for WCS is $12.15. While it means Canadian companies get a little less for their oil, it also means crude by rail becomes affordable again. This will have a impact in reducing the glut of oil currently in Canada and in the long run decrease our production quota.
2. Increased differential between WTI and Brent. The difference has increased to $9.10/barrel. Anything around 8-10 is where it becomes economical for countries to start increasing there North American imports. If this continues we will start to see a decrease in oil in storage in the US.
3. I will not discuss the Middle East in depth, however with Itan oil being cut off, now threats to block the straight, and talk of each country picking sides. It certainly could be a interesting summer!
4. SGY should have good numbers in Q1, announcement date I believe will be May 14th.
5. SGY will most likely increase there dividend in the next 3 months. Who knows exact timeing, could be at Q1 earnings or on the 15th of any month when they declare their dividends.
All that to say, I continue to hold and buy a little more each month. Good luck to all the longs, 2019 should be a great year for SGY!
Kid