Post by
Experienced on Nov 08, 2021 9:55am
Desperate Times
With the resounding defeat of the Democrats in Virginia and the slim win in New Jersey coupled with downward trending poll numbers for Biden should we celebrate or be worried?
From my persepctive the answer is yes and no. Yes because it suggests that American will turf out the Dems in the mid term elections next November which IMHO is a good thing since some semblance of sanity will return to Washington.
That said, the scary thing is that the Dems now know for sure they will be crushed next December and so they will be determined to pass as many crazy laws as they can and make as many decisions to further their agenda as they can before they get turfed out.
For Canada and more specifically, SU, the biggest item in this regard is the ENB Line 5 which goes through Michigan and supplies almost half the feedstock for SU refineries in Ontario and Quebec. With the current political environment, Biden will be under increasing pressure to order a stop to the flow of oil through this pipeline. What this might mean for SU is unclear and depends a lot on what contingency plans SU and ENB has put together.
No matter what happens this will place a cloud over SU once the euphoria over the divy increase settles down. In the case of ENB, analysts are quoted as saying a shutdown would reduce cashflow by about 3%. My back of envelop calculations would suggest a higher number and so we could see some downward pressure on its SP.
Time will tell as to how this will play out - hopefully some sanity will return before it is too late but we have little evidence of this lately from the US.
Comment by
goliath06 on Nov 08, 2021 1:14pm
LINE 5..........Are you referring to ENBRIDGE?