Penn West
Recently I've been following Penn West, an oil and gas company. Take a look at the following two charts:
What these show is that for about a year there has been a growing gap between the price of crude oil and the price of gasoline in Toronto. Logic tells us that we can expect a correction of this gap at some point. Analysts are telling us that gas prices may reach the $1.40s or $1.50s this summer, which would effectively correct the gap.
What we can see is that the price of Penn West correlates somewhat with the price of crude oil. If this is true, then the recent rise of Penn West should signal the beginning of a rise to match the rise of crude.
Any thoughts?
What these show is that for about a year there has been a growing gap between the price of crude oil and the price of gasoline in Toronto. Logic tells us that we can expect a correction of this gap at some point. Analysts are telling us that gas prices may reach the $1.40s or $1.50s this summer, which would effectively correct the gap.
What we can see is that the price of Penn West correlates somewhat with the price of crude oil. If this is true, then the recent rise of Penn West should signal the beginning of a rise to match the rise of crude.
Any thoughts?
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