Q: http://us.rd.yahoo.com/finance/external/reuters/SIG=12hs3vndm/*http://www.reuters.com/article/2012/12/13/canada-oilprice-idUSL1E8ND98S20121213?type=companyNews&feedType=RSS&feedName=companyNews&rpc=43
The increase in US oil supply, coupled with the decrease in demand and pipelines issues, paints a sorry picture for the oil sands. Both big and small Canadian producers will likely suffer in the short and medium term, until some meaningful new outlet takes place. Additional Canadian production in the coming year will further exacerbate the problem. Yet, all this is likely to be resolved with time. Some producers with upgraders, like COS,
might be better off, but most, whether it be CNQ, SU or IMO, will be affected. The months ahead might not be rosy. Would you simply advise staying the course, or transitioning for regular accounts or RRSP accounts into other traditional stocks ?
The increase in US oil supply, coupled with the decrease in demand and pipelines issues, paints a sorry picture for the oil sands. Both big and small Canadian producers will likely suffer in the short and medium term, until some meaningful new outlet takes place. Additional Canadian production in the coming year will further exacerbate the problem. Yet, all this is likely to be resolved with time. Some producers with upgraders, like COS,
might be better off, but most, whether it be CNQ, SU or IMO, will be affected. The months ahead might not be rosy. Would you simply advise staying the course, or transitioning for regular accounts or RRSP accounts into other traditional stocks ?
