Loading ...Background:
Destiny Resource Services (T-DSC) provides services (such as seismic surveying, mapping and line clearing) to the oil and gas sector. The majority of its business is in Canada but it is expanding in the US. Business is highly dependent upon the price of natural gas and the amount of exploration for gas. Business is […]
Oil:
It was a big day in oil today as the price dropped over $4 to $126. It wasn’t the weekly US oil inventory that caused the drop as the volumes dropped almost 10 million barrels from the previous week; this was the largest drop since the 2004 hurricane season. The drop in inventories was […]
In many parts of the world such as the U.S. and just about any country that manages its currency (e.g. China, Latin America, Russia, OPEC nations etc) have seen inflation continue to climb. With inflation being so high and interest rates being low, the returns available on some fixed income investments (e.g. bonds) have a […]
I bought some more Nexen Inc (T-NXY, N-NXY) an oil and gas company at $39.40 after the International Energy Agency (IEA) said it plans on reducing the forecast of oil supplies after studying depletion rates on the world’s 400 biggest oil wells. Apparently the revisions (which represents an important change in methodology) to the […]
Economics:
Canada’s April inflation numbers increased to 0.8% for the month and 1.7% year over year. Canada reported food increased 0.8% in the month and energy prices increased 6.0% (this contrast to the US which strangely enough showed no change in energy prices). Although the year over year numbers are low relative to the other […]
Oil:
There was further clarification on the Iran and its possible reduction in oil output. Iran’s oil is heavier and more sour than others and currently the market is over supplied with heavy sour crude. As a result, Iran is thinking about cutting back production. Too bad, I thought this might have been the beginning […]
Stock Portfolio Change:
I sold Amerigo Resources Ltd (T-ARG, copper producer) at $1.91 for a 13% loss and replaced the position with more Quadra Mining Ltd (T-QUA, copper producer) at $24.68 and wrote June covered calls ($26 strike) against the position giving me $1.05 in premium. The covered call option position reduced my effective purchase […]
