RE:$90 oil?Anything is possible especially if the unrest in the middle-east keeps ramping up. A direct attack on Iran and not just their embassy in Syria ought to do it or before that a retaliatory strike against Israel by Iran for the embassy bombing would pretty much ensure the latter and spike futures.
I'm not sure how many cards the Fed have left in the inflationary deck but you can bet they will use what they have. I don't know If Biden will need to release any SPR oil having a middle-east war not of USA's making as an excuse for high fuel prices.
The Canadian government doesn't need to add a wealth tax as rising oil prices guarantees an ever increasing royalty stream and income tax flow that grows significantly more than the oil pricing as certain levels are achieved.
Inflationary pressures again become the danger here as rising fuel prices bring rising costs for ...everything and everyone. How that affects those pseudo-promised, future bank rate cuts is probably not going to be good but who knows for sure.
CJ is making a lot of cash at these levels and can hopefully start reducing the debt they have added the last quarter or two towards the goal of self-sustaining SAGD and cap-ex funding. As that starts to show up in earnings reports the share price will rise accordingly but will probably be range-bound until they actually do show up. Meanwhile, every day oil stays at these levels SAGD moves closer to completion and derisks while the dividend stays safe as houses.
GLTA
UltraTired wrote: $90 oil, here we come. Will $100 oil be possible?