The latest report on the incredible wildfire that is out of control in Alberta, Canada is not good. The fast moving wildfire is having a major impact on crude oil deliveries to the United States. Crude prices dropped to the lowest level in the last 14 days even though shifting winds moved the fire away from the oil facilities in Alberta, according to entrepreneur and investor Martin Lustgarten. Lustgarten is familiar with the oil business because of his dealings with countries like Venezuela and other Latin American suppliers.
Lustgarten, a Florida resident, said that a cut in oil production in Canada may have a dramatic impact on U.S. oil stockpiles. Mr. Lustgarten said the oil prices dropped by 2.7 percent in New York. The oil production in Alberta is 40 percent less than it was before the fire. If the fire continues, stockpiles will suffer. Morgan Stanley said the U.S. stockpiles are at record levels so the production cut would have a major impact on prices at the pump.
Martin Lustgarten is familiar with offshore investments. Lustgarten has been part of the investment industry for more than 20 years. Lustgarten is an avid watch collection and animal rescue proponent. His work in South Florida and his GoFundMe program is helping find homes for abandoned dogs. Lustgarten has a history of working and investing in other countries. He has been involved in several venture capital purchases, and those investments are in retail, wholesale, and the energy sector. So getting natural disasters under control like the fire in Alberta is important to him.
The investment banking industry is connected, and Lustgarten keeps abreast of the issues that can impact his companies. If the fire continues and the winds change again, the impact on the oil industry could have a dramatic impact on Lustgarten companies.
One of the important lessons that Lustgarten has learned in the investment industry is things can change quickly. Lustgarten thinks it’s important to keep communications open especially when natural disaster strike. Even though Martin is in South Florida what happens around the world directly affects his businesses. Follow Martin on Twitter to stay up-to-date.
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