By Daily Crux Editor Brian Hunt:

If oil declines substantially, you won't want to own small, highly leveraged oil companies with the bulk of their assets in the Canadian oil sands.

Research firm Moody's says large diversified companies like ExxonMobil and EnCana are better bets to ride out lower prices.

Extracting crude from the oil sands costs much more than conventional oil fields... which means profits dry up faster – and loans become harder to service – for companies focused on the region.

Read full article...

More bearish posts on commodities:

Why commodities could suffer a terrific collapse

Why oil prices could drop $10 a barrel in just weeks...

Commodities could get hammered as speculators unload bets