What a change in oil prices, heading lower (again) for another day. We see Brent crude at it’s lowest in 4 months and down 20% from it’s high this year. Most of the news coming out on Crude is just not good news: Iraqi oil exports rose to an all-time high, number of rigs seeking oil rose by 21 to 659, according to Baker Hughes.
Brent crude for September settlement fell $1.15 to $53.47 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate (WTI) for Sept delivery declined $0.75 to settle at $47.39 a barrel on the New York Mercantile exchange. WTI moved into bear market on Thursday.
For source, click here
Currently, I have flattened my short position in Oil but looking to get back to the short side – strategy: the next pop up, we’ll short some oil.
Where is this all heading?
Bank of Canada is already trying to do their part to soften the blow from low oil prices by cutting short-term rates to bolster the economy but they are running out of room going to 0.50% bank rate. It’s kind of like pulling on the levers of a car and there’s no more levers to pull but the car just keeps going.
Housing effect: we will see a continued rise in house prices in key market areas (Toronto & Vancouver) due to population growth, cheap money, and land supply restrictions.
Until next time, live life better!