Investing.com – From an unloved market, U.S. crude has turned into something oil traders can’t seem to get enough of.
West Texas Intermediate, the benchmark for New York-traded crude futures, has gained 65% since Tuesday’s settlement, rising like a phoenix from the ashes of Black Monday when it fell 126% to sub-zero pricing amid demand busted by the Covid-19 pandemic.
Minus the epic percentage moves, WTI was, of course, nowhere near its old self, trading almost $45 below a barrel below where it began the year.
“We need to take this rally with an ounce of caution … make it two ounces,” Igor Windisch of the IBW Oil Brief said as he pointed to a continued demand deficit for at least 20 million barrels of crude per day versus production.
“Don’t fool yourself – because you can and probably will be caught by fundamentals,” Windisch wrote, adding that upcoming production cuts by OPEC were also priced into WTI. “No, the fundamentals have not changed in the past 48 hours. Actually, they have worsened — all parts of the equation, supply, demand and stocks.”
WTI’s front-month contract settled at $16.50 per barrel, up $2.72, or 20%, on the day.
, the London-traded global benchmark for crude, put in a more modest show, rising 96 cents, or about 5%, to settle at $20.37.
June WTI’s outperformance appears driven by optimism among a majority of crude traders over the past two sessions that U.S. drillers will cut production quicker and deeper than previously thought in shale oil basins that deployed hydraulic fracturing, or fracking.
“We estimate that the total number of started frac operations will end up below 300 wells in April 2020; close to 200 in the Permian and less than 50 wells each in Bakken and Eagle Ford,” Oslo-based consultancy Rystad Energy said in a note. “This translates into a 60% decline in started frac operations between the peak level seen in January to February 2020 and April 2020, as the majority of public and private operators implement widespread frac holidays.”
Underscoring that sentiment, Oklahoma’s energy regulator on Wednesday allowed production cuts and even shut-ins by drillers in the state who found it just uneconomical to pump anymore though they still wanted to hold on to their leases.
It was the first win by regional oil groups seeking relief from state regulators after Texas deferred a decision on Tuesday that it mandated production cuts by drillers in the largest U.S. crude producing state.
Yet, some like Windisch urged caution among those tempted to put in fresh long positions in June WTI.
“June could see storage tanks struggling to come off highs, in which case the days leading to expiry next month could see yet another squeeze,” Francesco Martoccia, senior associate in commodity research at Citi, wrote in a note to clients.
John Kilduff, founding partner at New York energy hedge fund Again Capital, concurred with that view. He said production cuts of 9.7 million barrels per day planned by global oil producers like the United States, Saudi Arabia and Russia fell woefully short of demand loss projected at up to 30 million barrels daily.
“In my opinion, the June WTI contract will repeat what May did,” Kilduff said. “It will grind lower and lower and lower into expiration and probably turn negative at some point in time.”
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.
