>The price of a barrel of crude oil dropped to yet another six-year low Friday, closing down $1.30 at $35.47 US, and taking the Canadian dollar down with it.
>Crude prices are now only about $2 away from their recession low, when a barrel of WTI bottomed out at $33.98 in February 2009. They're down 33 per cent since the beginning of the year.
>The catalyst in what has been a constant tide of bleak outlooks for oil was a report on Friday from the International Energy Agency that growth in demand will ease next year to 1.2 million barrels per day, from 1.8 million barrels a day this year.
>The IEA expects oversupply to continue at least until late next year, suggesting prices will struggle to recover. That's a bad sign for oil prices that have lost more than two--thirds of their value in a little over a year.
>The Canadian dollar was also dragged down in the process, closing at $72.60 on Friday, off two-thirds of a cent.
>The loonie has repeatedly broken a series of 11-year lows this month on its downward slide. Friday's low is the lowest point for Canada's dollar since May 2004, when the currency went as low as 71 cents.
OPEC producers can pump oil for small amounts of money compared to lots of other production regions on Earth. If prices are low, many competitors have to stop pumping or face financial ruin. OPEC countries gain market share
I don't think it's as great for OPEC as they think. Especially when countries are still powering ahead with conversion to greener energy. They were hoping to crowd out competitors not in OPEC, but they might just be missing their last opportunity to sell oil at a high price.
Gas is $1.70 a gallon where I live and according to some Canadians on 4chan, the average price up there is around $5.60/gallon. Damn. You're basically selling your oil to us for free while you guys have to chop down a maple tree and sell it on the market in order to afford a gallon or two.
You could always just move here if you can live without Tim Horton's.
>>tfw US didn't want our pipeline
>>tfw US would rather get oil from shit skins
The keystone xl pipeline was just an extension to the existing keystone pipeline, that runs through the Us.
>So, good for everyone?
No, nations that have nationalized their oil fields and depend on oil revenue for a large chunk of their budget, usually get more unstable as they spend every penny and dont save for the enviable dip in oil prices. This can lead to lots of unrest and the need for american intervention., But in first world nations like the Us which oil revenue makes up almost none of its tax base and employs a very small number of its citizens, its basically a stimulus for the Us economy.
>I'm buying bitcoin
At least invest in something that isn't a literal meme. The bitcoin bubble has burst before, it will burst again. It's only good for "anonymous" payments when you deal in onion trades.
>all that unreliable shit
>all that expensive shit
>thinking the libs will ever go for hydro with muh fish when it's the best option there
Maybe we can store it by buying quadrillions of rechargeable batteries
A few Canadian provinces already do quite a bit of hydro electricity. I dont know how it's stored but I do know we sell a fare amount of power to the states so there is profit to be made.
Tidal and geothermal are expensive to start but are renewable and profitable in the long run
The big one will be biodiesel I think. There's so much waste in agricultural processes that can make it. If oil companies began investment in all ends of this business, including pushing automakers to design more diesel friendly engines, there could be alot of cash here considering how much agriculture Canada does. Especially in Alberta where the low oil prices are being felt the most.
This isn't hippy nonsense either, it can be done and if things go like they are, it will need to be done to save our economy. This is the future and the opportunities are huge for whatever companies are willing to make the initial capital expenditures and cut their ties to the dieing oil business before they go under taking us Canadians with them.
>but how is it a stimulus.
Due to lower oilprices, Gas prices drop, leaving consumers with hundreds or even thousands of extra dollars to spend.
An uptick in consumer spending usually follows a drop in oil prices, Which creates a higher demand for goods(which are typically cheaper to produce and transport due to lower oil prices) which spurs a slight uptick in job growth(although this is short term).
A low dollar is certainly a spiked cock up the ass for the average Canadian, but I'd imagine it's also a nice treat for visiting foreigners and Canadian businesses which trade anything but oil internationally.
I'm not paying 80 bucks for the crap that game publishers are pushing though.