Oil Sands and Related Stocks Message Board

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Gold/Mining/Energy : Oil Sands and Related Stocks

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To: Tommaso who wrote (6246)	1/30/2006 11:52:48 AM
From: Wyätt Gwyön	Read Replies (1) of 25575

I consider that with most of my investments and investment income denominated in Canadian currency, imo oil stock profits essentially follow the USD price of oil wherever the companies happen to be located, because oil trades in USDs. if CL goes up but CAD/USD goes higher, then CAD-denominated profits of COS, etc. will be lower (to the extent they are not hedged), but this decline in CAD profits will be invisible in the USD-denominated profits of the same Canadian co (except to the extent that CAD-denominated expenses, like labor, also rise relative to USD). Canadian energy cos usually provide a breakout of price sensitivity to CAD/USD fluctuations. essentially i think CAD/USD is a wash for energy investors, whereas it is not a wash for, e.g., investors in Canadian retailers.

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