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Canadian Investing / Canada (General)
|Subject: Re: PWE slump||Date: 11/14/2012 6:52 AM|
|Author: tim443||Number: 63062 of 63617|
Probably not the only problem but PWE is currently somewhat a victim of the current hype about the US badly named 'Fiscal Cliff'. It is heavily owned in the US and the talk of a dramatic increase in taxes on Dividends and capital gains taxes has people unloading it until there is some clarity.
I own a lot of it bought in 2009 in DRIP mode in wife's TFSA. I keep ending up with a whole lot more shares every quarter but probably really should keep a closer eye on it.
Another problem for all of our western crud producers is the discount on WCS (Western Canada Select) due to the glut in Cushing? We really need to find an non-US outlet for our oil or continue to suffer the lower prices.
<<<Read and Weep>>>
Why price discounts for Canadian crude are here to stay
Reason #1: A massive amount of oil is flooding a stagnant market
By Alberta Oil Staff
September 01, 2012
The difference in prices companies get for the continent’s traditional benchmark crude blend, West Texas intermediate (WTI), and that of Europe’s Brent blend has consistently been in the US$20 range (in Brent’s favor) for much of 2011 and 2012. But the differential is twice as painful for producers pumping oil out of Western Canada.
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