[TyroneTheTrader]

What to you guys think about buying canadian royal oil and gas trusts as bet on oil and gas prices going up? I am an American and feel that the US dollar is going to get hit worse for inflation from oil than our friends to the north.

[MrBill]

There is a pretty high positive correlation between oil & gas prices and the stock prices of oil companies. Majors like BP & Shell seem to move very much in-line with underlying prices while Russian oil cos. for example seem to be discounted somewhat due to market perceptions of risk and as companies like Gazprom not being very transparent. However, Canadian companies will not necessarily out-perform, but you may use them as a play on the Canadian dollar. But, the Canadian dollar has already appreciated substantially, so you are betting that both oil & gas prices as well as the Canadian dollar continue to strengthen from here going forward. Good luck.

[rockdoc123]

Canadian oil trusts have been a great investment over the past years. Not only has the share value increased substantially in sync with oil prices but the distributions keep flowing in. Unfortunately the party may be coming to a close. The Canadian government in true Liberal fashion are gearing up to eliminate the tax relief trusts used to have. So going forward might the trusts might not be a great bet.

[TyroneTheTrader]

I got in on these soon after the post and have done well on them. Also the Canadian gov decided not to eliminate the foreign tax refund.