Another Loonie article

[moisheh]

Here is another comment on the Loonie. Although Economists are just "guessers" there has been talk of oil being $20.00 or less for generations to come. Kind of extreme! One other item I read was that Canada may go to a Bank of Canada negative interest rate. Can you say Argentina? If the loonie is at 60 cents next season will you go south. At that rate an American dollar would cost almost $1.70. WOW!!

Moisheh

[John_Joey]

1 Canadian dollar = .72 US dollar

1 US dollar = .70 British pound

I would love to go to the UK again and take the kids this time, but it's just too costly. I guess we all have our crosses to bear.

[lbrjet]

Nobody is holding back anything. They are simply going to produce at their already high levels. No one, including the US, is cutting. This action doesn't help the glut at all especially since Iran is just getting going.

[moisheh]

timmac: I hope you are correct. Remember that Iran will be shipping lots of oil. There is a worldwide glut of oil. Russia may not be able to hold back for very long. They need the rubles. A giant chess game!

Moisheh

[timmac]

Just heard on the news today that Russia and Saudi Arabia are freezing out put levels at January levels, means no extra oil will be dumped on the market, dang and gas prices were just getting to $2 a gal here in Vegas and January levels in July might raise the cost of gas again..

[mockturtle]

The Middle Eastern oil cartels can sit on their reserves and force the prices down for years, if they choose.

[John_Joey]

About a decade ago I read a very interesting document on the true cost of oil. If everyone took a "fair" profit, the cost was roughly $40/barrel. That was a decade ago, so add inflation to that number.

IMO, the cost of oil both at $120+ a barrel and today under $40/barrel is artificial. I'm guessing your dollar will come back, but not like it was just three years ago. That was an oil bubble, like so many other investment bubbles we've seen that burst. Oil is now a good value investment, so expect a rebound IMHO.

YMMV

[moisheh]

Even if oil went to say $40.00 the Loonie will still be low. Our economy is terrible and we have a leftist Gov. that the Americans do not like. Our auto industry has moved to Mexico. The manufacturing that is left is mostly low wage. I don't see many companies moving to Canada. Where are people supposed to work? The logging industry that John and Angela mentioned can only provide so many jobs. I am glad that I am not 50 years old looking for work.

Moisheh

[3oaks]

But, with a little luck, they won't ever go back to the high end.

It will take more than a "little" luck.

Several states along with our federal government want to drastically increase the tax on oil and gasoline. It doesn't take any guessing to know where oil and gas prices along with the additional tax increases will be when crude oil and refinery prices rise once again.

[scbwr]

Having lived on the Canadian border for all of our working careers, I hope that for the sake of all parties that the exchange rate returns to close to even. When it's close to even, it makes it a lot easier for Americans to explore Canada and for our Canadian neighbors to visit our country. And, there are a lot of American businesses that depend on the Canadian snowbirds.

As much as I am enjoying the low gas prices, I don't count on them staying as low as they are right now. But, with a little luck, they won't ever go back to the high end.

[icanon]

Don't believe everything you read.

[gbopp]

I can't see oil being $20 for generations......
I'm surprised the price remained this low as long as it has.

[windstar1961]

All speculation at this time.