Inflation’s soaring, the pound’s collapsing, and the Bank of England reckons we could be heading for recession. But one man still has a smile on his face.
With oil down more than 20% from its record high, Canadian energy stocks have been beaten down to more affordable levels. But as concerns over demand and refining margins grow, it can be hard to determine which Canadian energy stocks are still viable profit plays.
Strong oil exports helped to boost Canada’s trade surplus in June. The trade surplus increased to $5.4 billion (C$5.8 billion) from $4.8 billion (C$5.2 billion) in May, the national statistics office announced earlier this week. But a large part of that increase was due to higher prices, not higher volumes. Oil reached a record of $147 per barrel on July 11. Since then, oil has dropped to below $115 a barrel.
The drop in oil prices coupled…
More Americans, 52 percent, live in the suburbs than anywhere else. The suburban growth rate exceeded 90 percent in the past decade. But there’s been a radical shift in recent months.
The Environmental Protection Agency has denied a request from several U.S. policymakers to temporarily waive ethanol requirements for gasoline in hopes of bringing down corn prices.
In energy news Tuesday, oil continued its bearish run. Crude for September delivery dropped to $119.17 a barrel, down $2.24. September reformulated gasoline also fell 4.4 cents to $2.9564 a gallon.
The continued decline in oil prices should come as no surprise as traders remain worried about weak demand amid ongoing turmoil in the U.S. economy.
A report from MasterCard Inc. Tuesday showed that gasoline consumption in the U.S. has dropped for the fifteenth consecutive week.
“Market participants are still focusing on slowing energy demand amid weakening global growth, especially in the U.S.,” remarked Andrew Kryuchenkov of Sucden Research. But “a stronger dollar can put more pressure on the market in the near future.”
Meanwhile, Tropical Storm Eduardo made landfall in Texas and will…
In energy news Monday, oil prices dropped sharply. Crude for September fell $3.69 to $121.41 a barrel, but dipped even lower during after hours Globex trading to below $120 for the fist time since May 5.
September reformulated gasoline also fell to $3.0002 a gallon, down 8.4 cents.
The slump in oil prices was largely caused by worries that a weakening U.S. economy will result in lower demand for the energy commodity. The Commerce Department reported that inflation has hit 4.1% this year, its largest growth in 17 years.
“This is very bearish for the economy and therefore consumption,” remarked James Williams of WRTG Economics. This “means that the Fed may have to increase rates to combat inflation,” he continued.
While the Fed is…
With Americans driving less and banks tightening the screw, Detroit’s “Big Three” — Ford, GM and Chrysler, could be the next big bailout. “Life is a highway, and I wanna drive it all night long…” - Tom Cochrane
Consumer spending, which accounts for more than 70% of the economy, will be seriously threatened in the months ahead, as prices continue to rise, wages plateau, and government stimulus checks wear thin.
Chevron Corp. (CVX), the second-largest U.S. oil company, has recently experienced a decimation of its share price: The stock has dropped nearly 20% from its 52-week high of nearly $105 to Friday’s close of $86.05.
As oil whipsaws its way toward the unheard-of-level of $150 a barrel (crude closed at $134.60 yesterday, extending a multi-day skid, but traded above $147 as recently as Friday), Americans are finally responding to the pressure of higher gasoline prices and have downshifted their consumption.