"A barrel of West Texas Intermediate, the North American benchmark, was trading about 1.5 per cent higher by midday, up nearly $1 to just over $58 US. Prices remain relatively cheap and are about $15 lower than compared to one year ago. Meanwhile, several Canadian oil and gas companies are taking a hit to their stock price. The Toronto Stock Exchange's energy index was down about 4.5 per cent by midday Monday."
"Though stocks of Canadian energy companies are down, Schwartz said it's likely an overreaction, noting it will likely take years to rebuild Venezuela's energy sector infrastructure before production could noticeably increase. It's oil that has to be transported and refined. It's expensive stuff to get out of the ground. But you can see the longevity of those reserves and the value of them, he said."
North American oil prices rose after weekend upheaval in Venezuela, with West Texas Intermediate trading about 1.5 per cent higher, up nearly $1 to just over $58 US. Prices remain roughly $15 lower than a year earlier. The Toronto Stock Exchange energy index fell about 4.5 per cent, with Suncor Energy down about four per cent and Cenovus Energy and Canadian Natural Resources Ltd. down about seven per cent. Venezuela produces heavy crude similar to Western Canadian oil, raising concerns about future oil and natural gas output. Analysts say rebuilding Venezuela's energy infrastructure could take years and that extraction, transport and refining are costly, but reserves retain long-term value.
Read at www.cbc.ca
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