Suncor Energy Inc T.SU

Why is Oil Down

[Chad123]

Good Question. There are all lot of speculation going on right now and there could be many reasons for the big drop but I'm guessing that there might be some speculation to the end of the occupation going on right now. Seeing some tweets about it.....

[MigraineCall]

Biden is considering restricting product exports to lower domestic prices. AP Ask yourself, how would that affect Canadian oil? Not much. Interesting last few days, being down 4M$ in just a few days. Hail the power of margin that cuts both ways. That puts me back to where I was just 4 weeks ago. Bummer, I guess. I sold off 2M$ of HEU at BE to keep margin in check and not create more tax gains

[MaximusGainus]

Perhaps eastern Canada's US product supply may get cut off? Now wouldn't that be something. Could have had the Energy East pipeline by now, but no, we don't want your stinking dirty oil.

[Franman184]

Yes we do want your oil in Atlantic Canada. Problem is the road block in Quebec. Not sure how much product from the states goes to the New Brunswick refinery but I am confident that alot of the refined product goes to the USA. Restricting the flow of crude and refined materials between countries eventually only make the situation worse

[mrbb]

the beauty of oil producers with downstream operation is the rarely talk about juicy crack spread which is still $52.89/bo today, that's still 2.65X of historical mean of $20/bo. Compare this with $110 WTI today versus $60 before the start of the oil run, that's a only a 1.83X.   Crude oil is quite useless without refinement and refinery capacity is fixed. Disruption from

[mrbb]

Correction on the closing WTI price it came from oilprice.com but i didn't notice it was 19 hours delayed quote at the time of my old post while other oil prices were only 1 hour delay   WCS 91.51 −6.94 (−7.05%) today 

[mrbb]

Crack spread is still very good, went up some more after my last post 58.42 Change  1.25 ( 2.19%) 3-2-1 Crack Spread (energystockchannel.com)