Crude oil prices are struggling on short-term fundamentals, but we continue to get a disturbing outlook for our long-term energy future. Weakness enveloped oil, driving it down for the fourth day in a row on reports of oil disruptions getting back online, yet a report from Rystad Energy says that global oil discoveries fell to the lowest level in 63 years as oil companies slashed spending on oil exploration by the most in history.
Gold supply is getting tighter, deposits of quality are getting rarer and the project development timeline is getting longer. Enter Canada. The Canadian Shield still offers the possibility of break-out discoveries, says PearTree Securities analyst Eric Lemieux. The recent spate of M&A activity points to the potential of the region, and Lemieux discusses several companies that are well positioned to add value.
After rising to the highest price this year, crude oil prices are starting out the early U.S. trading session in negative territory. The market remains primarily focused on Sunday’s OPEC/non-OPEC meeting with most everything else remaining in the background.
Will Canada’s sale of its gold become known as “Poloz’s Bottom,” named after BofC Governor Stephen Poloz? It’s possible, especially if gold was to rise sharply in the coming years, as it did following “Brown’s Bottom.”
For more than a year now, commodity prices have been under pressure from the strong U.S. dollar and slowing global demand. This has made a huge dent in the balance sheet of many net exporters of resources, in turn weakening their currencies.