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More fallout from the U.S. rejection of the Keystone XL oil pipeline: Canada may turn to China...

More fallout from the U.S. rejection of the Keystone XL oil pipeline: Canada may turn to China in order to "diversify" its energy exports, as relying less on the U.S. would strengthen the country’s “financial security.” Currently, 99% of Canada’s crude exports go to the U.S.
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Comments (6)
  • Venerability
    , contributor
    Comments (3048) | Send Message
     
    Two consequences of this formal rejection, although most knew it was coming:

     

    Loonie finally - at long last - reaches and goes above parity versus Dollar.

     

    And Brent spread begins to widen out against WTI again.
    19 Jan 2012, 04:57 AM Reply Like
  • Golden Oxen
    , contributor
    Comments (666) | Send Message
     
    Would not be the first time the Loonie rose above parity with the US Dollar, but more importantly would it hurt the share prices of the Canadian gold miners, especially Goldcorp?
    19 Jan 2012, 06:51 AM Reply Like
  • Venerability
    , contributor
    Comments (3048) | Send Message
     
    No, the opposite in the US.

     

    US stocks go over the Canadian stock prices again.

     

    This generally increases interest among US shareholders, albeit at the margins. And quite a few Canadian banks and funds like to play variations between the Canadian and US forms of dual listed stocks as a currency arbitrage, when there is rapid movement. So increased volumes, perhaps, which the sector could use now.

     

    Loonie is not going way higher this time, IMO. Just back to 1.01 or 1.02.
    19 Jan 2012, 06:59 AM Reply Like
  • Golden Oxen
    , contributor
    Comments (666) | Send Message
     
    Thanks Ellen, and yes increased volume would be welcome, anything to spark more interest.
    19 Jan 2012, 07:25 AM Reply Like
  • User 509088
    , contributor
    Comments (1101) | Send Message
     
    canada will sell the us all the oil it wants. no worries.

     

    respect your comments always, Venerability, but i can't see it being any more than a knee jerk bounce.

     

    there is no capacity westbound to china or anywhere else. since the reagan and mulrooney gov'ts canada abandoned the third way and committed to the north south relationship.

     

    any capacity is years away.

     

    it's the canadian oil that makes the us a net exporter, isn't it? should be good for the us dollar, value added, shouldn't it? like once it's realised?
    19 Jan 2012, 08:51 AM Reply Like
  • Venerability
    , contributor
    Comments (3048) | Send Message
     
    Yes "like when it's realised."

     

    Which will not come until after the US election, if at all.

     

    Ergo, today favors the Loonie against Emperor Dollah.

     

    And a whole lot can change geopolitically between now and Election Day - in the US, in Canada, and in China.

     

    (Personally, I think China would gladly just purchase all of Canada, if it possibly could.)
    20 Jan 2012, 03:42 AM Reply Like
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