Oil prices gained nearly 3 percent on Monday, paring earlier losses, on the eve of what is almost certain to be a contentious presidential election in the United States and as major economies in Europe go back into lockdown in an effort to stem rising coronavirus infections.
Global benchmark Brent crude for January delivery rose $1.03 or 2.7 percent to settle at $38.97 a barrel on Monday, while US benchmark West Texas Intermediate (WTI) crude for December delivery rose $1.02 or nearly 3 percent to settle at $36.81 a barrel.
Both contracts fell earlier in the session after a sharp selloff last week when Brent fell 12 percent to below $38 a barrel – exiting its five-month trading range.
But reports that Russia is considering delaying its planned loosening of the taps in January helped lift prices later in the session on Monday.
The Organization of Petroleum Exporting Countries and its allies including Russia, a grouping known as OPEC+, have cut output by about 7.7 million bpd to prop up sliding oil prices.
Goldman analysts forecast a delay in plans to ramp up output in January. The next OPEC+ meeting kicks off on November 30.
Oil markets have been under pressure in recent days as business and travel-sapping lockdowns return to Germany, France, Italy and the United Kingdom. Also adding pressure on prices, Libya substantially upped its oil production in recent days.
“With plenty to worry about in the oil market – lockdowns, Libya, Iran, shale resilience – such a move lower is not surprising,” Goldman Sachs crude analysts wrote in a Sunday note. “This is consistent with our ‘patient bulls’ view that the second stage of the market rebalancing – the ‘cyclical recovery’ – would take time [and] require patience.”
A Rystad Energy analysis expects Libya’s crude oil output to average approximately 750,000 bpd in November and climb to 1 million bpd in February 2021
Healthy readings on global factory activity also helped buoy oil prices on Monday.
Japan’s export orders saw a boost and China’s factory activity rose to its highest level in nearly 10 years in October. In the US, the ISM manufacturing index also increased more than expected in October with spikes in production, new orders, and employment components.
Police officers talk to a man on a railway platform while checking if people are wearing mouth and nose protection as the spread of the coronavirus continues in Berlin, Germany [File: Annegret Hilse/Reuters]
US elections
Oil markets are also awaiting the outcome of the US presidential election.
“OPEC+ is sort of waiting for a signal from the US election,” Louise Dickson, an oil analyst with Rystad Energy, tells Al Jazeera. “The OPEC+ coalition has had an unprecedented and direct line to President [Donald] Trump which has provided a security blanket in terms of cutting global production and maybe getting something in return.”
Another possible demand hit from surging COVID-19 infections paired with uncertainty around OPEC+’s pathway to 2021 and the US elections means could spell volatility ahead.
Democratic presidential nominee and former Vice President Joe Biden speaks at a campaign drive-in, mobilisation event in Detroit, Michigan, US [File: Brian Snyder/Reuters]
“I think in terms of oil prices it’s going to be a bumpy road in 2021 regardless of who assumes office,” said Dickson.
A possible victory by Trump’s challenger, Democratic presidential nominee Joe Biden, could also lead to more oil flowing into a market where demand has been crushed by the pandemic.
Biden has indicated he wants to return to the Iran nuclear deal, a move that would give Iran the green light to export more oil.
Dickson also points to a possible smoothing of relations with Venezuela.
“Between Venezuela and Iran, if Biden pursues more of a carrot than a stick policy – that could mean another 2 million barrels per day,” said Dickson.
But Dickson sees forces at play that could also boost demand, should Biden win the White House, including better trade relations with China and emerging markets, loosening of trade policies in general, an uptick in the exchange of goods and a spike in demand for maritime bunker fuel.
Biden, who has pledged to promote a clean energy economy by investing $1.7 trillion over 10 years, is also likely to deliver a bigger fiscal stimulus package. The expected $2 trillion would inject life into the stagnating economy, boosting domestic oil demand by 300,000 bpd, according to Rystad Energy.
“Through Biden has risky potential supply policies, we see more demand with him,” Dickson told Al Jazeera.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
Police officers talk to a man on a railway platform while checking if people are wearing mouth and nose protection as the spread of the coronavirus continues in Berlin, Germany [File: Annegret Hilse/Reuters]
Democratic presidential nominee and former Vice President Joe Biden speaks at a campaign drive-in, mobilisation event in Detroit, Michigan, US [File: Brian Snyder/Reuters]
