The following is a very interesting article from Bloomberg Business News and includes data from the Baltic Exchange. It is especially interesting for the future of the Canadian Province of Alberta, given the directions which the new socialist government there is appearing to take at this time.
Remember, the Alberta government is critically dependent on high energy prices for the majority of their revenue, and to fund their very generous social welfare programs.
Four months into oil’s rebound from a six-year low, the tanker market is sending a clear signal that the rally is under threat.
A sudden surge in demand for supertankers drove benchmark charter rates 57 percent higher in the two weeks through May 20. OPEC will have almost half a billion barrels of oil in transit to buyers at the start of June, the most this year, while analysts say about 20 million barrels is being stored on ships in another indication the glut has yet to dissipate.
The Organization of Petroleum Exporting Countries is pumping the most oil in more than two years, determined to defend market share rather than prices.
A record cut to the number of active U.S. drilling rigs and billions of dollars of spending reductions by companies since last year’s price plunge has yet to translate into a slump in barrels produced. The world is pumping about 1.9 million barrels a day more crude than it needs, according to Goldman Sachs Group Inc.
“Supply of oil continues to build,” said Paddy Rodgers, the chief executive officer of Antwerp, Belgium-based Euronav NV, whose supertanker fleet can haul 56 million barrels of crude. “All of this oil needs to go somewhere,” he wrote in an e-mail May 19.
Daily rates for supertankers on the industry’s benchmark route reached $83,412 on May 20, from $52,987 on May 6, according to the Baltic Exchange in London. While rates since retreated to $64,710, they’re still the highest for this time of year since at least 2008.
So hurry on over to the sites linked above to get a crystal ball idea of just what wonders the future may hold for the happy denizens of Greater Urban Alberta. Greater urban because must of the folks who are dependent on government for their welfare live in cities after all and get all their income from government either in the form of salaries or the dole.
The Canadian dollar is now under 80 cents US. Most of what the folks in Greater Urban Alberta like to indulge in is denominated in US dollars and supplier costs have gone up over 25% in the last few months, ask me, I know, I’m a supplier. Things don’t look pretty down the road.
Getta Life, eh.