Post says Crescent Point boss worried about high pricesCrescent Point Energy Corp (C:CPG)
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Tuesday March 8 2022 - In the News
The Financial Post reports in its Tuesday edition that U.S. benchmark crude is soaring, and JPMorgan is warning that the market could move higher yet. Postmedia's Chris Varcoe quotes analyst Natasha Kaneva in a report saying: "In the immediate term, so large is the supply shock that we believe the price needs to increase to $120 per barrel and stay there for months to incentivize demand destruction. Were disruption to Russian volumes to last throughout the year, Brent oil price could exit the year at $185" (all figures U.S.). Surging prices and demand destruction spark an uncomfortable question: At what point are prices simply too high, causing inflation to heat up, the global economy to cool down and consumers to get squeezed? "High oil prices really aren't great for anybody. In energy-producing regions, there's a lot of interest and excitement about prices when oil pushes past $80," said Kevin Birn at IHS Markit. "But the longer-term consequences are also not good, even for the producers." Crescent Point chief executive officer Craig Bryksa said: "Anything above $65, the sector is doing well and making money and able to return capital to shareholders. In that $75 to $80 range, everything seems to work well."