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Oil Prices Rise As Trump Touts China Trade Deal – OilPrice.com

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4 years ago

June 23, 2020

Harry Miller

Oil Prices Rise As Trump Touts China Trade Deal | OilPrice.com

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

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By Irina Slav – Jun 23, 2020, 9:20 AM CDT

Both Brent and WTI prices spiked early on Tuesday morning as Donald Trump said the U.S.-China trade deal was still on.
An increase in COVID cases in many parts of the world weighed on oil markets after the trade deal induced price spike.
If a U.S.-China trade deal is successful, the demand impact will likely outweigh a second wave of COVID-19

Crude oil rose on Tuesday morning after President Donald Trump said the U.S.-China trade deal was still on, with Brent gaining more than one percent to trade over $43 a barrel and WTI breaching the $40 threshold to reach $41.55 a barrel before both prices fell back.

Reuters reports that the U.S. president’s comments came on the heels of remarks by a senior Washington official who told media the deal was “over”, which rattled the market.

Thanks to these comments, oil futures spiked to their highest levels in about three months, MarketWatch reported.

The latest boost to prices also followed an improved demand outlook from Bank of America, which stabilized prices at a higher level.

“Global oil market fundamentals have shifted significantly since we last adjusted out oil prices forecast on March 8. Given the improved outlook, we lift our 2020 Brent price forecast to $43.70/bbl from $37 prior in 2020. We also increase our 2020 average WTI crude oil price forecast from $32 to $39.70/bbl,” BofA’s oil analysts wrote in a note last Friday, as quoted by MarketWatch.

The price rise was then countered by a continued increase in new Covid-19 cases in many parts of the world, which dragged prices back down. However, with China being the largest importer of crude in the world, and with the trade deal with Washington widely considered a crucial factor for sustained oil demand growth in the Asian powerhouse, the good news from Trump may well outweigh the bad news going forward. Related: Why The $17.5 Billion Write-Down Is Just The Beginning For BP

“Prices rose further on the relief that the US-China trade status remained intact and on indications that despite Covid-19 infections increasing, road fuel demand and global traffic are still standing strong,” Rystad Energy’s head of oil markets, Bjornar Tonhaugen said as quoted by MarketWatch.

“Looking at the strength of the physical market and recovering global oil demand, we think that the crude oil price is still on its way higher,” SEB bank said in a note, as quoted by Reuters.

By Irina Slav for Oilprice.com

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Irina Slav

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TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

Published

8 hours ago

November 7, 2024

Anne Joseph

CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

Published

8 hours ago

November 7, 2024

Anne Joseph

BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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Canada Goose reports Q2 revenue down from year ago, trims full-year guidance

Published

8 hours ago

November 7, 2024

Anne Joseph

TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.

The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.

Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.

On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.

In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.

It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:GOOS)

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