[Newsbot]

Title: Oil price will fall to $70 US a barrel in 2015, Goldman Sachs says
Category: Business
Posted By: ShepherdsDog
Date: 2014-10-27 13:12:39
Canadian

[ShepherdsDog]

Is that the sound of the economy from SW Manitoba, all the way to the Rockies, coming to a screeching halt.....and the sound of all the Easterners heading home?

$1:

One of the world's leading investment banks says the benchmark price of North American oil is going to fall even further, to $70 US a barrel by next spring.

Investment bank Goldman Sachs slashed its forecast late Sunday night for both West Texas Intermediate (known as WTI) and Brent crude — the two most common types of oil used and sold in North America and Europe.

Goldman Sachs says WTI will go for $75 a barrel in the first three months of 2015. Brent, meanwhile, will change hands at $85 a barrel. Both forecasts are down $15 from what the bank was last expecting. And both are forecast to slip even lower in the second quarter — historically a seasonally low time for oil prices — before rebounding a little in the summer of 2015.

So much for the $150 a barrel idea

[Brenda]

The pumps here want $1.269/liter (half an hour ago). I filled up in Washington today for $3.19/gallon.

[bootlegga]

ShepherdsDog ShepherdsDog:

8O Is that the sound of the economy from SW Manitoba, all the way to the Rockies, coming to a screeching halt.....and the sound of all the Easterners heading home?

$1:

One of the world's leading investment banks says the benchmark price of North American oil is going to fall even further, to $70 US a barrel by next spring.

Investment bank Goldman Sachs slashed its forecast late Sunday night for both West Texas Intermediate (known as WTI) and Brent crude — the two most common types of oil used and sold in North America and Europe.

Goldman Sachs says WTI will go for $75 a barrel in the first three months of 2015. Brent, meanwhile, will change hands at $85 a barrel. Both forecasts are down $15 from what the bank was last expecting. And both are forecast to slip even lower in the second quarter — historically a seasonally low time for oil prices — before rebounding a little in the summer of 2015.

So much for the $150 a barrel idea

Based on how much manufacturing work gets done in central Canada, it's a hit for the whole country actually, but yeah, if it drops below $75, it won't be pretty...

[Freakinoldguy]

I doubt it. I read years ago that the oilsands needed a $40 plus barrel to be profitable so it would seem they've got along way to go before they'll shut down production.

The bigger question is how are all those poor starving Oil Executives and their share holders going to explain gas prices at well over $1.00 per litre?

[andyt]

bootlegga bootlegga:

ShepherdsDog ShepherdsDog:

8O Is that the sound of the economy from SW Manitoba, all the way to the Rockies, coming to a screeching halt.....and the sound of all the Easterners heading home?

$1:

One of the world's leading investment banks says the benchmark price of North American oil is going to fall even further, to $70 US a barrel by next spring.

Investment bank Goldman Sachs slashed its forecast late Sunday night for both West Texas Intermediate (known as WTI) and Brent crude — the two most common types of oil used and sold in North America and Europe.

Goldman Sachs says WTI will go for $75 a barrel in the first three months of 2015. Brent, meanwhile, will change hands at $85 a barrel. Both forecasts are down $15 from what the bank was last expecting. And both are forecast to slip even lower in the second quarter — historically a seasonally low time for oil prices — before rebounding a little in the summer of 2015.

So much for the $150 a barrel idea

Based on how much manufacturing work gets done in central Canada, it's a hit for the whole country actually, but yeah, if it drops below $75, it won't be pretty...

Well no. Low oil prices benefit the Central canada. And especially the lower dollar that comes with it. Unfortunately a lot of manufacturing capacity is gone, so how much ont benefits remains to be seen. This is where the Germans were very smart during the melt down. They paid companies to keep employees on, so that as soon as demand ramped up, they were ready to begin production with a trained workforce.

I'm sure we'll ride this roller coaster again. Let the middle east heat up, or Putin act up and prices will go up again. Also supposedly the US economy is ramping up, increasing demand and that should drive prices up a bit too. And that's good for Ontario as well.

Plus if it shuts the Albertans up for a while about how they were so smart to put all that oil in ground in he first place, that can be a good thing too. Maybe it will make y'all face up to having to raise taxes if you want all those govt services, like say a consumption tax. Economies built on oil are just not stable in the long run.

[jj2424]

andyt andyt:

Well no. Low oil prices benefit the Central canada. And especially the lower dollar that comes with it. Unfortunately a lot of manufacturing capacity is gone, so how much ont benefits remains to be seen. This is where the Germans were very smart during the melt down. They paid companies to keep employees on, so that as soon as demand ramped up, they were ready to begin production with a trained workforce.

I'm sure we'll ride this roller coaster again. Let the middle east heat up, or Putin act up and prices will go up again. Also supposedly the US economy is ramping up, increasing demand and that should drive prices up a bit too. And that's good for Ontario as well.

Plus if it shuts the Albertans up for a while about how they were so smart to put all that oil in ground in he first place, that can be a good thing too. Maybe it will make y'all face up to having to raise taxes if you want all those govt services, like say a consumption tax. Economies built on oil are just not stable in the long run.

Yeah a stable 6.5% BC unemployment rate vs a 4.0 to 6.5% unemployment in Alberta is much better..

The ass sucking provinces always talk about the "boom and bust" economy of Alberta. I'll take an Alberta "BUST" over a BC "BOOM" any day. Just wait till all the temporary Albertans head home and jack up your unemployment rate.

What does BC have that nature didn't give it? What's the economic claim to fame of BC other than natural resources?

[Canadian_Mind]

andyt andyt:

Well no. Low oil prices benefit the Central canada. And especially the lower dollar that comes with it. Unfortunately a lot of manufacturing capacity is gone, so how much ont benefits remains to be seen. This is where the Germans were very smart during the melt down. They paid companies to keep employees on, so that as soon as demand ramped up, they were ready to begin production with a trained workforce.

I'm sure we'll ride this roller coaster again. Let the middle east heat up, or Putin act up and prices will go up again. Also supposedly the US economy is ramping up, increasing demand and that should drive prices up a bit too. And that's good for Ontario as well.

Plus if it shuts the Albertans up for a while about how they were so smart to put all that oil in ground in he first place, that can be a good thing too. Maybe it will make y'all face up to having to raise taxes if you want all those govt services, like say a consumption tax. Economies built on oil are just not stable in the long run.

I don't think the dollar should have to sit around 60 cents US for manufacturing to be effective. Germany has a rocking manufacturing center, despite the higher euro, so does the US with it's higher dollar.

[andyt]

Maybe it shouldn't, but that's the way it seems to work for Canada. Guess we're just not productive enough to compete with a high dollar. Remember all the fuss about Dutch disease when our dollar was high?

[Jabberwalker]

That ought to kick the living crap out of Putin. Energy is their only big export. ... other than their army, that is.

[Xort]

I've always disliked calling Ontario and Quebec central Canada, They are East or middle east. The center of Canada is more west.

[Jabberwalker]

, They are East

There is a whole lot of Canada to the East of Ontario and Québec ... in any ways, the most interesting part of this country. The "center" of Canada is just slightly to the west of the Ontario-Manitoba border and way the hell up north, where hardly anyone lives.

[Xort]

Jabberwalker Jabberwalker:

, They are East

There is a whole lot of Canada to the East of Ontario and Québec ... in any ways, the most interesting part of this country.

Not by volume of land in terms of square kilometres. Not even in terms of straight line distance.

The center is due north of Winnipeg.

$1:

The "center" of Canada is just slightly to the west of the Ontario-Manitoba border and way the hell up north, where hardly anyone lives.

Also applies to the US. The Midwest is center east by anyone able to read a map.

Anyway oil is profitable from the oil sands down to $38 a barrel. Shutting down production just raises the total cost of projects in terms of repaying loans.

Expansion might slow, but operations are somewhat more steady. When oil sands projects slow down other construction picks up. I know a guy that is an equipment operator, he's never stopped pushing dirt around for one group or another.

[Jabberwalker]

The center is due north of Winnipeg.


.... and Winnipeg is just over the Ontario-Manitoba border.

Sheesh.

It's the same distance as my total daily commute in the GTA.

[Xort]

Jabberwalker Jabberwalker:

The center is due north of Winnipeg.
.... and Winnipeg is just over the Ontario-Manitoba border.
Sheesh.

We must be using a different version of what just over the border is.
Or you're thinking in aircraft terms.