Oak trees and WTI below 52 week lowsProverb asks "when is best to plant an Oak Tree?" comes to mind as we (plus all the Oilsands COOs) wake to find paper traders bringing crude oil prices down to US$65 handle. Pressure will mount upon the oilsand's CEOs and COOs, if paper trader take price even lower. CL backwardation amplifies this.
Based on CL frontmonth, US$65.27 not seen since 2023-05-04 and 2023-03-20, then 2021-12-03. Prior to that, historically speaking, paper traders took this -40 USD per barrel in an operation to save their own bacons.
All modern oilsanders have published guidance to mothball operations around US$45 to 50 +- range. Other fallout will be to cut dividends probably well before then ( ~~ % payout to FCF recipe.)
So back to proverbs, in a twisted way, "when is best to develop lowest cost / cleanest oilsands insitu platform like what AXE CTI has? ???