The fact is that no matter if WTI or Brent goes up or down, what really matters is what we’re doing with it. At this point the United States is going to continue to produce oil at 9 million barrels per day.
Canada has been next in line to feel the loss of imports into the United States. They’ve managed to up their supply to the United States over 3 million barrels per day and now we’re just casting them aside as we concentrate on keeping our production strong.
If anyone was paying attention to the crude oil market yesterday, you might have noticed that the market is finding some stability. We tumbled and lost a $1, but finished with the Bulls and reversed to nearly fifty cents higher.
Cheap crude oil prices mean less money spent on supply. This also gets a boost with more crude being contracted from US production and that cuts spending on transpor- tation cost. Some will argue that refining margins are not close to record highs, but I’ll tell you that demand has never been better.