What's Up on Wall Street - Liz MacDonald, Fox Business

Good morning and welcome back to the financial exchange oil prices at 88 dollars a barrel. On the open market however. Canadians are giving early Christmas presents barrels of oil for less than fifty dollars per barrel. But to get your western Canadian select priced at 45 a 45% discount to west. Texas intermediate on Tuesday you'll need a tanker rather than a stocking this is a big story the fact he got oil in Canada trading under fifty dollars a barrel. We're joined by Liz MacDonald from the Fox Business Network to help us understand what's going on north of the border good morning Liz welcome -- Delighted if it. What do you make of this this is huge news. It indicates it's it's remarkable. That Canadian oil and are charging 48 dollar a barrel up any right at the 45%. Is and went in Canada electric and west Texas intermediate. I think that we are approaching. Record levels in this and how cheap Canadian oil and oil is and I think that the lack of price and parent by candidate and is. Is that will be laying down -- -- and 99% of the X or. And up and united they did not they have not struck deals with Asia or other country. As though they cannot access new markets need to -- that pipeline project in two United States languish in regulatory -- It we've got a a massive oversupply. Of oil in crude worldwide -- now don't leave Iraq is back in a big way so you look at oil supplies are higher than they've been in years. Yet that's an important point about Iraq too because. A group authority projecting net oil prices will likely break down. Well below ninety dollars a barrel in twenty are keen. And now the Alberta oil and are are a big player in this because what we're seeing now is you know -- bodies. Can that restrict oil production to -- right yeah. And the United States support -- not have a compliant eight own company like OPEC countries do but we've got now that cash for gas. Is hiding basically -- implement the OPEC world wide. So whether or not -- -- note that that. That gas prices rock and all of I continue to drop there's an irony here and at the problem for oil and gas producers that it is being project. Got to make money intent and effort and -- about a 45 dollar a barrel. And though you know once he hit that didn't elect an investment make command because. You know some version eight that Baker Hughes for the world what they waited until we got to the back and -- boring and bad that can't make money at the right. No we can't be any end and the difficulty Canada has is. You know he can't just turn often turn on the supplies unit takes months to start up a refinery once you've turned it off so. It will -- what's the eventual outcome where are we looking at it or what are we looking at for oil prices. June of 2013. I think 85 a barrel. World wide. And you know by the wave it's 45 dollar a barrel Alpert like it McCain and I've also been in the breakeven point for those boosters are building -- seem -- -- project in the XP five dollar a barrel range to build. It's anywhere from where -- -- -- I've depending on the project though. I think that world biting and at the oil price breaking down and gas prices there're a trending down in many parts of the country. I hate being gas prices nationwide grant read out the -- war. And -- and we're being in many areas. Is there below street but gallant you know it's interesting development that. Will gold move in tandem with oil I -- -- see historically when you look at it you know for a hundred years. There's been a correlation between gold prices and oil prices what do you think about gold. I did you know what that correlation I've been watching it and it really difficult and expect all because. Is adding that what we the end of you know. The Federal Reserve monetized in the nation that. So I'm not sure that that that our relation I'm not sure a lot of people. Okay all right Liz hey thanks for your insight we can -- time Ali let it.