Oil at $66.
Saturday, May 30th, 2009Oil on Friday (May 29, 2009) closed at 66.31.
It’s interesting to listen to, and read, the opinions of energy analysts.
TD Economics released a detailed Quarterly Commodity Price Report report on April 3, 2009 http://www.td.com/economics/commodity/cpr0409.pdf . Even as the report was released, oil was over $51. TD Economics stated: “The recent push above the US $50 per barrel mark was driven by some optimism for a global recovery and actions by the U.S. Federal Reserve in an attempt to stabilize financial markets. However, we believe that this is nothing more than a bear market rally and will prove to be temporary.”
It will be interesting to read their next Quarterly Commodity Price Report.
Meanwhile, there are a number of commodity bulls out there.
Perpetual oil bull Jeff Rubin has stated that, by 2012, oil will reach $225. a barrel. Canwest article is at: http://communities.canada.com/ottawacitizen/blogs/bulldog/archive/2009/05/26/the-world-of-225-a-barrel-oil.aspx
An excellent interview on BNN last week was Jaime Carrasco of Blackmont Capital. His reasoning on oil, copper as a bell-weather commodity, and a wariness about coal makes this a must watch.
http://watch.bnn.ca/market-call-tonight/may-2009/market-call-tonight-may-22-2009/#clip175350
The decision last week by Imperial Oil to proceed with the Kearl oilsands project, at an initial cost of $8 BILLION, speaks louder than all the analysts combined.
Needless to say, a large number of my clients are in the oilpatch. A future post will outline the significant correlation of oil price, Alberta real estate, and the Canadian dollar.