The benchmark for American crude oil dropped as low as US$66 per barrel on Wednesday, and Canadian oil and gas stocks have been dinged as a result
While investors around the world have been captivated by the noisy upheaval of the banking system, the energy space has been quietly tanking.
Those who keep a close eye on the energy sector know this kind of reaction all too well. Whenever turmoil strikes, heavy volatility in the energy complex is almost certain to follow. The early days of the pandemic, for example, saw oil prices turn negative for the first time ever. Prices that low seem unlikely. But then few forecasts predicted sub-US$70 crude coming this winter after last year saw the biggest oil price shock since the 1970s. The general consensus in mid-2022 was that a demand-supply imbalance would persist, keeping prices high.Years of low investment in oil and gas production, combined with Russia’s invasion of Ukraine and the subsequent sanctions, were expected to keep global supply tight.
For many years, the energy sector was a great place for shareholders to lose money. Growth was the industry’s mantra, with debt used liberally to finance aggressive drilling efforts. This business model, of course, was highly sensitive to bouts of economic weakness. Drastic cost cutting, insolvencies and deep losses in share price ensued whenever a serious downturn hit.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion: For Thomas d’Aquino, the dream of a North American community is deadHe believed in a continental external tariff that would mitigate bilateral fights, but it was not to be
Read more »
Oil rises on Chinese demand hopes, fading bank crisis fearsBrent crude climbed 54 cents to $79.99 a barrel by 0915 GMT, while U.S. West Texas Intermediate crude futures gained 76 cents to $72.09
Read more »
Oil climbs from three-month low as China's recovery strengthens - BNN BloombergOil rose from its lowest close in three months as traders took stock of the outlook for demand amid turmoil in the U.S. banking sector.
Read more »
The oil sector has its swagger back – Canadian InvestorThe oil sector has its swagger back CanadiansInvest
Read more »
Canada to set up federal-provincial group to speed up oil sands tailings remediationThe Canadian and Alberta governments will establish a federal-provincial working group to accelerate remediation of oil sands tailings ponds, the Alberta government said on Wednesday.
Read more »
Oil prices plunge, Canadian energy stocks take beating as global banking fears spread - BNN BloombergCrude oil prices took a beating Wednesday as market chaos related to a spreading banking crisis continued.
Read more »