Canadian online stock trading in US stocks can be successfully carried out with an experienced online broker dealer. Canadians looking for the right US stocks to buy would be considering oil.
Oil Prices Could Rise Further
Oil prices are set to rise after the subsiding of the initial Brexit shock. Financial traders are putting money back into commodities, which made the oil prices rise. Brent crude futures were trading per barrel for $48.95. US crude had experienced a 44-cent increase to $48.29 per barrel. Prices rose again with news of the Venezuelan oil crisis and the strike in Norway raising doubts as to whether oil production could be affected and the demand not be met.
Things Not Looking Up for North Dakota Refineries
However, things have not gone well for a North Dakota diesel refinery that had to close down. The state has been affected by recent low oil prices, because of which the refinery business isn’t quite doing well. The refinery, established by MDU Resources Group Inc and Calumet Specialty Product Partners LP at Dickinson, has been running at a loss and is now sold to the only other refinery owner in the state, Tesoro Corp.
The MDU-Calumet refinery broke ground in 2013, with the owners looking to capitalize on the oil boom the state was experiencing. However, the refinery managed to open only in May 2015. Weather and construction delays were some of the reasons for the delay, and they pumped up the cost of the refinery to $430 million, which was around 40% higher than the initial estimates.
It wasn’t a huge refinery, with the intended capacity of 8000 barrels of diesel only. No jet fuel or gasoline was to be produced, unlike the much larger refineries situated on the Gulf Coast of the US. In spite of the limited capacity, the refinery opened later than usual and sent its owners on a $7.2 million loss in their first quarter itself.
Refinery Sold with Sellers Seeing Their Stocks Rise
Before completing the sale, MDU virtually took over full ownership of the refinery by paying off the $28.5 million refinery debt accumulated by Calumet which also absolved it of environmental obligations. Buyer Tesoro has assumed the $66 million debt of the refinery and also revealed that it was planning to invest $10 million in it. MDU’s board approved the deal and expects at least $150 million impairment charge.
The sale of their refinery did good for Calumet and MDU at the stock market. MDU’s shares rose to $23.34, a 0.5% increase, while Calumet experienced a 5.3% rise in shares to $4.53.
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