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Oil Sands Stocks Slammed By Japan Woes (CNQ, CVE, SU, COSWF, IMO, NOA)
by Todd Shriber | March 15th | Filed in: Commodity Stocks News
Tickerspy’s Oil Sands IndexOIL SANDS INVESTING IDEAS
OIL SANDS COVERAGECompanies focused on oil extraction from oil sands, tar sands, or extra heavy oil.
OIL SANDS CHART OIL SANDS METRICS
The combination of plunging share prices for uranium and faltering oil prices has been a toxic brew for Canadian stocks this week and the Oil Sands Stocks Index is highlighting that that negative trend today with a 2.1% decline. Asia, including Japan, is a prime destination for crude oil extracted from Canada’s oil sands region and fears that Japan, one of the world’s largest oil importers, will temper its demand for crude in the near-term is weighing on the Canadian dollar, a prime commodity currency, and shares of oil sands producers. The Index is home to seven stocks, all of which are in the red today. The best performances, if they can be called that, belong to Canadian Natural Resource (CNQ) and Cenovus Energy (CVE), both of which are down fractionally. Suncor Energy (SU), Canada’s largest oil company, is lower by 1%. Canadian Oil Sands (COSWF), Imperial Oil (IMO) and North American Energy (NOA) are down 3% or more as oil stocks falter with futures trading at two-week lows and investors speculate on the ability of Japan’s already fragile economy to pull through this natural disaster. Investors can track the Oil Sands Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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(Jutia Group, 3/22/11)
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March 15th, 2011 at 2:48 pm
With 4 nuclear plants suddenly permanently out of commission, the country will have to run existing oil & gas fired plants near flat out to minimize rotating blackouts. Furthermore, the fastest plants to build and bring online are oil and gas. Thus Japanese, demand should climb strongly. Hard to see why oil sands stock decline as a natural response to this. Biggest problem for Alberta based companies is lack of pipelines to west coast. Even though much of emergency demand is being met by Indonesia, this requires customers displaced to get oil & gas from other sources.
March 16th, 2011 at 4:47 am
The oil extracted from Canada’s oil sands is not crude oil. Bitumen is extracted from the oil sands and upgraded to Synthetic crude which is superior to most crude oil as it is manufactured to requirements, for example few impurities and low sulphur. Syncrude is not crude, it is better.
And is it sold to Asia. It is sold to United States and Canada who also import light and increasingly heavy crude via tankers from around the world. Maybe there is a concern that the Japanese economy is going to shrink reducing world oil demand.
Whatever the reasons for the decline they do not negate the fact that there was a decline, if one considers a 1% varation a note worthy change.