It is about a year ago I posted we would see 20.00 US oil before this Glut was over.
Well, Ruthrs announced yesterday that Cushing OK was paying 19.50 a barrel on its futures.
The previous low as about a month ago at 21.00 per barrel.
It is going to go still lower and stay there for a couple of years is my prediction. Reason?
In the last week China has announced going into the market place with "new oil"
And in the deprived part of the world, Kenya-Uganda oil new oil pipeline has let it be known they are going to be exporting more. The new pipeline is costing them 6.5 billion dollars. They are going to want to get that paid for. This is the area of the world that has anti-theft systems built into their pipelines; where 109 people were killed in the last week in an explosion where they were trying to steal fuel for their improvised homes.
And, Iran! The state department is very quiet about what they had to give up in their deal with Iran who seem to be very astute dealers. Iran is capable of 6.5 million barrels output into a glut market.
My guess and its only a guess based on how the US deals. We will see about 100,000 barrels per day showing up at Cushing further eroding Canadian markets.
Obama is still working on laying 11,500 miles of 36" pipe from the shale in the north to the 5 districts in the US.
If you had any doubt about us needing a Canadian market and a trans Canadian pipeline you should see the picture a little clearer.
It is imperative we gag the traditional environmentalist who for the majority are US funded.
And if it comes to crossing treaty lands we have to start looking for a way to take it away from them at least for the right of way of an essential Canadian livelihood.
Don't count on Harper for anything. This is not the time to be tucking more gold into corporate pockets. The contrary; it is time to shut some of these operations down and send a lot of people back to where they came from! Leave it in the ground is not a bad idea!
Think about voting for a party who has the reputation of looking after the average person. That sure is not Conservative or Liberal!
Remember we will have 2 more elections after this one before we start to climb out of this!