RE:RE:WTI and ForexYes, there is a large moat here. WTI could be $60, and BTE would STILL be making a lot of money.
However, upside risk is higher right now than downside risk.
Implied gasoline demand for last week was down sharply. This will definitely be higher next week.
What investors seem to forget but I have noticed for the three decades I have been invested and watching these numbers: Inventory numbers are always bearish for a week that includes a holiday. Investors think the opposite, especially a summer holiday. People who have discretionary income to invest make up maybe 5% of the NA population. They are wealthy enough to use holidays to travel, plan celebrations, and drive around shopping the holiday shopping events. Most of the other 95% of people stay home and watch netflix or scroll through facebook instead of driving to work and kids activities and errands. In addition, commercial and industrial work shuts down for a full day. An entire day out of a week has a huge impact on demand.
A rebound in inventory numbers next week is all but certain. The bigger question will be how the inventory numbers compare to two weeks prior.
BayStreetWolfTO wrote: Riski, glad you watch this. Most have no idea about the F/X impact. You will see the impact on the financial statements every quarter.
These prices converted to CAD$ are truly a gift.
This is why I say even at $80 that is great....$80 USD WTI is $105 CAD LOL...higher than the averages of all those years (outside the brief spike...
People don't get how high $80 is at the current F/X rate
riski wrote: WTI was $110 with CAD/USD at 0.79 which is $139 CAD.
Now WTI is $95 with CAD/USD at 0.76 which is $125 CAD.
So down about 10%, but still really high prices from an historical perspective.
2008 WTI was briefly $140 with CAD/USD near par which is $140 CAD.
2011 WTI was $105 with CAD/USD near par which is $105 CAD.
2013 WTI was $100 with CAD/USD at 0.97 which is $103 CAD.