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Resource World - March 2013 - Vol 11 Iss 3

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a few dollars. From time to time, a shortage could push the price spread wider. The drastic price divergence started in 2010 and has been around $20 since. As previously stated, the problem for WTI has been the flood of oil flowing into Cushing from areas like North Dakota and Canada. A production boom took place recently in North Dakota, and Canada���s imports have risen to record levels over the last few years. In 2011, Canada, as a whole, exported 2.23 million bbl/ day of crude oil to the US, or about 25% of the US total crude oil imports. And North Dakota had 214 oil-focused rigs in May of 2012. All these factors have contributed to Brent becoming the new global benchmark. So what does all of this mean for WTI? Brent and the WTI futures have traded at a difference of more than $20 since last October. In November, the WTI-Brent spread widened to as much as $26.03 a barrel as WTI suffered from an oversupply, while geopolitical tensions supported Brent, the global benchmark. However, Brent also faces problems such as declining production in the North Sea, which pushes up the prices. The Middle East unrest also contributes to a price hike. As you can see, there are many variables to consider when trying to explain these price fluctuations. This will be a much talked about subject for 2013, so stay tuned for more on this. n Dennis Hoesgen and Eric Hoesgen are Senior Investment Advisors with Hoesgen Investment Partners (HIP) at Canaccord Wealth Management, a division of Canaccord Genuity Corp, MemberCanadian Investor Protection Fund. The information contained in this article is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does HIP, Canaccord Genuity Corp, or its subsidiaries, or affiliated companies, assume any liability. This information is current as of the date appearing in this article, we do not assume any obligation to update the information or advise on further developments relating to these securities. This report should not be considered personal investment advice or a solicitation to buy or sell securities. Canaccord Genuity and holdings of its respective directors, officers and employees and their associations, from time to time may buy or sell any securities mentioned herein. The views expressed are those of the authors and not necessarily those of Canaccord. Eric Hoesgen and Dennis Hoesgen can be reached at 604-643-7705 or HIP@Canaccord.com. Booking Stories for BTV! ���The exposure we���ve had has been phenomenal, lots of feedback from our shareholders and other investors.��� ��� Charles Page, CEO Queenston Mining TMI:TSX TELL YOUR STORY TO OVER 100 MILLION HOUSEHOLDS! www.b-tv.com www.ceoclips.com MARCH 2013 Profiling Publicly Traded Companies on TV and Financial Portals www.resourceworld.com 35

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