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I can't believe that the price of a barrel of oil is around $69.00- $70.00. I know it's the summer-driving season, but oil prices don't seem to ever experience any sustained pullback in value now. This worries me because of its inflationary implications. You've all heard about the…
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Early last year, I wrote about how those predicting oil prices would fall in 2006 were wrong because they did not fully understand the supply/demand relationship for black gold. In mid-2006, a few analysts started to predict oil moving to $30 to $40 in 2007, the assumption being…
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The Canadian dollar (CAD) just broke the US$0.94 mark to reach its highest level in about three decades. The trend for the CAD is bullish, and according to CIBC World Markets, the CAD could trade at par with the USD by the end of this year. For investors…
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The Amex Airline Index is currently moving sideways and looking for direction. The continued gyration in oil prices and intense price competition has pressured airline stocks, but the overall situation is much better now than it was a few years back. So, what airlines do you invest in?…
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Oil prices rebounded with the basis April 2007 light sweet crude oil futures contract on the NYMEX, breaking over the $62 mark on February 27, 2007. However, it fell just below the key $60 level on March 5, 2007. In Asian trading on Wednesday morning, oil edged back…
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Canadians living in the Province of Ontario have had a rather annoying situation to deal with recently, as they have had to experience a gasoline supply shock. The shortage was due to a fire that occurred at one of Imperial Oil's refineries last week, which caused a gas…
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Oil prices have rebounded to above $59 a barrel with the basis March 2007 light sweet crude oil futures contract breaking to $59.95 on February 5, 2007. Cold weather and increased demand drove oil up. The strong upside move should not be a surprise, given that oil continues…
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The recent break in oil prices to below $51 a barrel is positive for the airline industry. The Amex Airline Index touched a 52-week high on January 16 driven by lower oil prices, restructurings, and improving industry fundamentals So, which airlines should you invest in? In my view,…
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As it turned out, the overall economy's a party-pooper! Why? Well, in the topsy-turvy world of stock markets, "good" is the new "bad." Meaning, recently, every time the economy shows it has a pulse, stocks get a black eye. For example, last week, out of five trading sessions…
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We’re not far into the New Year, but Canadian oilmen are sad to report that oil prices are not warming up. In fact, prices are down about $10.00 from their 2006 average of $66.25. Not much is different in the natural gas department, as this warm winter, one…
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Oil prices have found some renewed buying in recent days as the light crude for January 2007 on the NYMEX broke back above $60 a barrel on November 27 and over $63 a barrel on December 1, 2006. Production cuts by the Organization of Petroleum Exporting Countries (OPEC)…
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Since Royal Dutch Shell put forward its $7.7 billion bid for the remainder of outstanding shares of Shell Canada, oil sands in Alberta could again become the target of potentially very intense international takeover rush. Next could be Syncryde Canada Ltd., which is majority owned by Canadian Oil…
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The steady decline in oil prices to below $60 a barrel has given some lift to the airline industry. The Amex Airline Index surged over 3% on September 12, but there remains some concern relating to softening air travel, especially after the foiled airline terrorist attempts in London.…
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Markets have shown some buying over the past few weeks. Since declining to a multi-month low of 10,747 on July 17, the blue chip DOW has gained 4.15% to break 11,200 on July 28. We have also seen buying in the technology and small-cap areas. Yet in spite…
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If you are looking for some positive cues from the market, forget it, they are not there at this time. The DWO gave up 396 points or close to 4% after recording three straight days of triple-digit declines to end last week. Investors are extremely nervous as indicated…
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The climate is currently ideal for higher oil prices. Last week, we had the testing of long-range missiles by North Korea, which caused concern in Asia as well as the United States. Add to the existing situation in Iran regarding its nuclear development program and you have added…
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When oil prices fell below technical support at $70, investors decided to pump the market higher thinking that maybe oil prices were heading lower. But, my contention is the positive trend remains intact. The June light sweet crude on the New York Mercantile Exchange surged over $72 a…
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Yesterday I wrote about takeover frenzy in the mining sector. But, after Shell Canada announced its acquisition of Blackrock Ventures Inc., the same brush fire is obviously going through the oil and gas sector as well. Unlike the mining sector, however, the frenzy is not only sparked by…
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After a recent relapse to the $71 level, oil prices are rebounding with the June light sweet crude on the NYMEX trading at near $75 a barrel. Increased tensions in Iran concerning the development of its nuclear program and the country's refusal to co-operate have market watchers thinking…
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The airline sector is clearly feeling the crunch from the rising oil costs. Along with trying to restructure their operations to produce a more cost effective operation, airlines are again facing high oil prices. The light crude futures contract on the NYMEX traded at over $75 a barrel…
