Connacher Oil and Gas

Sharky:

The CAD (Canadian $) is now in the 1.02 range in the US$. Down from 1.05. As the US$ strengthens, in US$ oil will cost less. The price in Euros will go up, as the Euro weakens against the US$. Potentially we could see the CDN $ at parity with the US$ again before the US$ begins its next leg down. The prime mover of all at the moment is the US$. I agree in time the Euro, US$ and the yen will all decline over the loger term. The US will continue to decline, as does Europe and Japan. The rise in the US$ is only a reaction to what is happening in Europe. Meanwhile, enjoy the added business activity a weak Euro provides. Northern Europe will be a temporary beneficiary of increased order and therefore economic activity!

Brian