Even gas couldn’t escape the heavy gravitational pull in oil today. Gas printed a new market low of $1.555 US/MM, taking out the recent low of $1.61 reached in 2016. While we are approaching a nearly 10% decline in gas, oil is off over $5/barrel which equates to over a 20% loss on the day. How much of this is real and how much is big boys (Russia and Saudi Arabia) playing a very big game remains to be seen. The impact is being felt strongly at home. Crude oil in Alberta traded below $10 for the first time ever. The impact is being felt in the Canadian dollar which shed nearly 2 cents today alone. This has kept Canadian gas prices nearly unchanged while US prices drop. The governments are stepping in to shore things up but it seems to be falling on deaf ears in the markets. Expect more of the same until we see this crisis start to improve. These are very tricky and uncertain times. (dc)
“We must accept finite disappointment, but never lose infinite hope.” – Martin Luther King Jr.