Si vous souhaitez rejoindre la communauté, cliquez sur l'un de ces boutons !
Voilà, un NPD majoritaire en Alberta. Cela changera quand même la perception, alors que le gouvernement là-bas, sans être anti-pétrole, ne sera plus un promoteur de l'industrie, mais cherchera à diversifier l'économie et à mieux réguler l'industrie. Il reste à voir comment ce sera perçue par "big oil". Effectivement, belle remontée du prix depuis le creux.
No reaction from the loonie is the best reaction–the best Christmas present of all–for Canadian oil companies.
While these companies have revenues that are based on the price of oil in U.S. dollars–almost all of their expenses are in Canadian dollars. That is especially true for Canadian producers who have all of their debt in their home currency.
Here is Canadian oil price pre- and post-OPEC announcement:
Pre-announcement – $45 WTI x 1.34 USD/CAD = $60.30 CAD per barrel
Post-announcement – $51.50 WTI x 1.33 USD/CAD = $68.50 CAD per barrel
Those prices exclude the differential that Canadian producers receive, but the percentage increase of 14% is exactly the same.
Most importantly–almost all this 14% extra revenue goes right to the bottom line for the producers–since costs for these companies are in Canadian dollars and haven’t changed.
If these three major news announcements in one month can’t make the loonie fly–what really could? To me it means the Canadian dollar will almost certainly stay low in the oil price range OPEC desires.
And that’s a great Christmas present to oil producers and their investors.