Are we facing peak supply or peak demand in crude oil? The major factor in crude oil price in long run is not determined by how strong the economy but by what car we drive in the future. All the alternative fuel are not competitive in terms of cost. Electronic car (EV) however, will change the whole dynamics. If in next 10 years, EV can capture 10% of the market and in 20 years, 30% of the market, then indeed we have seen the peak demand of crude oil. If EV is a burst, we will see crude go back to 100 again. All the new discovery are offshore deep sea oil which cost a fortune to get it out.
Today's market
Canadian market becomes over valued. The strong C$ will depress margin for Canadian companies. will buy 200 HXD (short TSX) @ 12.55
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