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Russia, Saudi Arabia, 'Very Close' To Reaching Oil Output Deal – OilPrice.com

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Russia, Saudi Arabia, ‘Very Close’ To Reaching Oil Output Deal | OilPrice.com

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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    Saudi Arabia and Russia are “very, very close” to reaching an agreement on how to react to the low oil prices, Kirill Dmitriev, chief executive at Russia’s sovereign wealth fund, the Russian Direct Investment Fund (RDIF), told CNBC on Monday.

    “I think the whole market understands that this deal is important and it will bring lots of stability, so much important stability to the market, and we are very close,” Dmitriev told CNBC on the day on which the former allies were set to hold a video meeting with other major producers, including U.S. representatives, to try to hammer out an agreement for a global collective cut of 10 million bpd and even more.  

    The meeting is now delayed to later this week, possibly April 9, OPEC sources told Reuters, after the spat between the Saudis and the Russians over who broke up their partnership took a turn for the worse over the weekend.

    First, Russia’s Energy Minister Alexander Novak and President Vladimir Putin said on Friday that Saudi Arabia withdrew from the OPEC+ agreement, announcing “significant additional discounts on their oil, as well as plans for a sharp increase in production,” as per the Kremlin’s English translation of a meeting between Putin and Novak on the global energy markets. 

    “As I said, we did not initiate the breakup of the OPEC+ deal. We are always ready to reach an agreement with our partners, in the OPEC+ format, and we are prepared to cooperate with the United States on this issue. I consider it necessary to pool our efforts to balance the market and reduce production as a result of these concerted and well-coordinated efforts. Based on tentative estimates, I believe the reduction should be about 10 million barrels per day, more or less,” Putin said.

    “The key partners in balancing the market should be producers like the United States,” Novak said, after noting that “Unfortunately, our partners from Saudi Arabia did not agree to extend the current deal on the current conditions. In fact, they withdrew from the agreement and announced significant additional discounts on their oil, as well as plans for a sharp increase in production.” Related: The Largest Rig Count Collapse In 5 Years

    Saudi Arabia reacted to these statements by putting out a statement from Energy Minister Abdulaziz bin Salman, who said that, via the Saudi Press Agency:

    “These claims are categorically false and contrary to fact.”

    “His Royal Highness noted that the Kingdom has exerted great efforts with OPEC+ countries to take action to prevent a glut in the oil market resulting from a decline in the global economic growth. However, this proposal made by the Kingdom and approved by 22 countries, unfortunately was not agreed upon by the Russian delegates, leading to non-agreement,” Saudi Arabia said.

    While the Saudis and Russians spat over who is to blame, they both signal that they would not cut production if the U.S. doesn’t join a global effort to reduce output.  

    By Tsvetana Paraskova for Oilprice.com

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      BREAKING: Canadian job market surprises with 289,600 added in May despite COVID-19 – Yahoo Canada Finance

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      (Getty Images)
      (Getty Images)

      The Canadian economy added 289,600 jobs in May, as parts of the economy reopened during the COVID-19 pandemic.

      Economists were expecting 500,000 jobs would be lost during the period.

      <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The unemployment rate went up to 13.7 per cent according the the data from Statistics Canada, which is a record-high since data became available in 1976.” data-reactid=”25″>The unemployment rate went up to 13.7 per cent according the the data from Statistics Canada, which is a record-high since data became available in 1976.

      The majority (219,400) of the jobs created were full-time positions.

      Timing played a big role in the job creation surge.

      “Labour Force Survey (LFS) results for May reflect labour market conditions as of the week of May 10 to May 16,” said Statistics Canada in its report.

      “By then, some provinces had begun to re-evaluate and gradually ease public health and other restrictions, including allowing some non-essential businesses to re-open.”

      Quebec accounted for nearly 80 per cent of the jobs created.

      Ontario, which along with Quebec has been hit particularly hard by the pandemic, was the only province to lose jobs in May.

      Trevin Stratton, the Canadian Chamber of Commerce’s Chief Economist and VP of Policy, called the numbers the “Schrodinger’s cat of job” markets. He says we shouldn’t read too much into them.

      “It is indeed a strange time when we react favorably to slowing job losses that by any standard measure would be catastrophic. Today’s figures (290,000 jobs gained, but 13.7% unemployment) are both terrible and positive at the same time,” he said in a release.

      We are still in an unprecedented economic downturn, but the unemployment rate is slowing. Canada avoided the worst-case economic scenario and the economic impact on the global economy has peaked, according to the Bank of Canada’s latest outlook.

      Brendon Bernard, economist at Indeed, says there are signs of encouragement including a rise in jobs postings. But a number of factors will determine how a recovery plays out.

      “How much the re-opening of shuttered areas of the economy boosts net-employment growth will in-part depend on whether layoffs slow,” said Bernard.

      “Growth in CERB applicants has eased through early June, but haven’t stopped, suggesting shockwaves from the pandemic continue to reverberate throughout the labour market. Durability of the rebound is going to require Canadians to have reason for optimism about the outlook for the economy, and the public health situation.

      <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Canadian economy shed around 3 million jobs in March and April.” data-reactid=”38″>The Canadian economy shed around 3 million jobs in March and April.

      <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter&nbsp;@jessysbains.” data-reactid=”39″>Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.

      <p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Download the Yahoo Finance app, available for&nbsp;Apple&nbsp;and&nbsp;Android.” data-reactid=”40″>Download the Yahoo Finance app, available for Apple and Android.

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      Bombardier to lay off 2,500 aviation workers amid COVID-19 struggles – CBC.ca

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      Bombardier will lay off 2,500 aviation workers throughout the year as the company struggles to keep its operations afloat during the COVID-19 pandemic.

      In a release Friday morning the Quebec-based transportation company said it is expecting to see a 30 per cent year-over-year loss in business jet sales, forcing it to reduce its workforce.

      In a statement to Radio-Canada Friday, the company said 1,500 of the layoffs will be in its Quebec facilities and 400 in Ontario, with the rest of the layoffs in its international facilities.

      “These are permanent layoffs,” the company confirmed in a statement. 

      Bombardier paused all operations in March in an effort to protect employees from the spread of the novel coronavirus. 

      It gradually resumed operations again last month, but had already reported a loss of $200 million US in its first quarter.

      The layoffs are just the latest in a series of struggles for the aerospace giant. 

      In February, Bombardier exited the commercial plane business, selling its remaining stake in the A220 program to Airbus, in an effort to pay off a multibillion-dollar debt.

      That same month, the company also sold its rail-building unit to French train giant Alstom SA, marking its exit from the rail business. 

      More to come. 

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      History Suggests Record 50-Day Stock Market Rally May Be Just The Beginning – Benzinga

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      The S&P 500 has gained a record 39.6% since it hit its 2020 low back on March 23. Not only has that rally erased much of the year’s COVID-19-related losses, it’s also the best 50-day stretch in the history of the market.

      After such a strong rally, traders are understandably getting uneasy the market is overbought and due for a pullback. However, from a purely historical perspective, the strongest 50-day periods have generally led to even more gains over the year that follows, according to LPL Financial Senior Market Strategist Ryan Detrick.

      A Closer Look

      On Thursday, Detrick looked at the seven other times since the S&P 500 was constructed in 1957 that the index has gained at least 20% over a 50-day period. In all seven instances, the index gained at least another 5.2% in the year that followed.

      “Big 50-day rallies in the past have taken place near the start of new bull markets, and the returns going out a year were quite bullish,” Detrick wrote.

      What’s Next?

      LPL found that the S&P 500 averaged a 1.1% gain over the month following the best 50-day stretches. The S&P 500 has averaged a 6.2% gain over three months, a 9.1% gain over six months and a 19.4% gain over the year following these exceptional 50-day stretches.

      Detrick said traders are right to be concerned about the durability of the rally in the near-term given potential red flags in the put-to-call ratios among option traders. However, history suggests the next six months to a year could be very kind to investors overall.

      Benizinga’s Take

      It’s difficult to step in and chase the SPDR S&P 500 ETF Trust (NYSE: SPY) today after the market has had its best 50 days in history. However, LPL’s research suggests long-term investors with dry powder should consider scooping up S&P 500 stocks on any near-term pullbacks.

      Do you agree with this take? Email feedback@benzinga.com with your thoughts.

      Related Links:

      5 Reasons The Value Stock Rally May Run Out Of Steam

      What The Yield Curve Is Saying About The Stock Market Rally

      © 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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