Connect with us

Business

What was behind oil's wild week and the challenges that lie ahead – CBC.ca

Published

on


It was a week unlike any oil markets have seen before.

On a day some oil investors are now calling Black Monday, the benchmark price for North American crude — West Texas Intermediate — went negative for the first time as oil traders panicked over a lack of storage and the expiring May futures contract, which are agreements to buy and sell a certain amount of oil at a certain time in the future. 

  • Click here to download CBC Radio’s business and economics show Cost of Living to your podcast player of choice, or find us on the new CBC Listen app.

A few days later, crude prices for June look robust by comparison, climbing to nearly $17 US a barrel on Friday. But such prices are still punishingly low for an industry that started the year with WTI hovering above $55 US.

Oilpatch spending, production and jobs are all under increasing pressure as the economic fallout of the COVID-19 pandemic crushes demand for oil worldwide.

As the week came to a close, CBC Radio’s The Cost of Living spoke with sought-after market watcher Helima Croft, a managing director and the global head of commodity strategy at RBC Capital Markets.

Croft, an expert on geopolitics and energy, addressed the week that was, OPEC’s historic cuts, the challenges that still lie ahead and what it’s going to take to turn things around.

The interview has been edited and condensed for length and clarity.


What was happening in the world that oil prices could go negative on Monday?

“The backdrop to what they’re now calling Black Monday in the oil market is that since the COVID-19 crisis began, we’ve seen a situation where, around the world, people are locked in their homes. They are not flying, they’re not driving cars. And we have no place, and no demand, for oil at the moment. 

“That was a sort of backdrop that went into the week, heightened concern that we were running out of storage, particularly in the United States.

Helima Croft, global head of commodity strategy at RBC Capital Markets. (RBC Capital Markets)

“And so there’s a uniqueness to what happened on Monday in terms of the May contract for WTI crude that was essentially expiring. And you had a situation where there’s a lot of pressure to sell that contract because nobody wanted to take physical delivery for that oil.

“But it reflected the larger concern in the market right now that we are running out of storage for oil.

There was hope, though, that when OPEC Plus announced a historically large cut — 9.7 million barrels-per-day of oil production — that it would help the situation. Has it helped? 

“This is a really important supply cut agreement. However, it came, people would say, too late into the crisis. And what had happened in the month leading up to the agreement was a price war between Saudi Arabia and Russia.

“It is going to be an agreement that extends a multi-year agreement and so the hope really is that as demand begins to pick up and people start driving and flying again, that this agreement will help balance the market, hopefully in the back half of the year or into 2021.

“It’s not going to impact the market immediately. It doesn’t actually take effect till May 1. But it’s important.”

Are there any more tools that OPEC could use to address the current imbalance in oil markets?

“One proposal that was floated by the minister from Algeria, who has the rotating presidency this year, was to essentially make the 9.7-million-barrel-a-day cut effective immediately, so not wait till May 1. But there’s some contractual issues with that … so that does not look like it’s going to be the policy route that OPEC opts for.

OPEC and OPEC Plus have agreed to cut nearly 10 million barrels a day in oil production starting May 1. (Ramzi Boudina/Reuters)

Now, there’s a question about compliance. OPEC has had a lot of challenges with compliance traditionally. Saudi Arabia, the UAE, Kuwait, those are the countries that have been the most compliant, honouring commitments. You have countries like Nigeria, Iraq — they have traditionally not fully lived up to their production obligations. And probably the biggest country that everybody is concerned about, will they live up to their cut commitments, is Russia.

Petroleum storage tanks at the BP Indiana Tank Field are seen this week in Indiana. The world is awash in oil, there’s little demand for it and we’re running out of places to put it. (The Associated Press)

“What OPEC and OPEC Plus can do is they can provide greater certainty to the market that these cuts will actually happen.

“The third thing that OPEC could potentially do, OPEC Plus, is to deepen the cuts. Saudi Arabia has agreed to cut production by close to four million barrels a day. The question is, would they go deeper?

  • CBC Radio’s business and economics show, Cost of Living, is in a new time slot on CBC Radio One due to the coronavirus pandemic. Catch it Fridays at 1:30 p.m. (2 p.m. NT), Saturdays at 6:30 p.m. or online anytime at CBC Listen.

“But given the demand situation that we’re looking at, given the hit that we’re taking in terms of people who are not driving, people not flying, there’s limited ability for OPEC to change the course of the prices in the near term.

Thinking about the crude storage situation right now, from your perspective, could we actually run run out of room for all the oil? 

“We’re looking at a situation where Cushing [in Oklahoma], one of the most important storage facilities in the U.S., could be hitting tank tops within the middle of May. There are other places to store in the United States, like, for example, Louisiana.

Listen here to Tony Seskus explain the negative oil prices on The Cost of Living:If negative oil prices caught you by surprise this week, you’re not alone. We explain what happened — and what those negative prices could mean for this country. 5:46

“But we could really be seeing a situation where, you know, come June, we could have very little storage left. And I think that speaks to sort of how unprecedented this crisis has been because what has made this period really unique is not just the scale of the demand hit we’ve taken because of COVID-19, but also we had a supply crisis in the midst of a demand crisis.”

How does oil eventually recover from all this? 

I think we really need to get on the other side of the COVID-19 crisis. People keep saying to me when it all come back and I say, ‘I’m not an epidemiologist.’ It goes back when people feel comfortable getting in their cars, driving to work, drive to recreational activities, getting on planes again and flying.

Toronto’s normally jammed Don Valley Parkway is seen during the evening rush on April 2. Demand for fuel has dried up as the pandemic has many people staying or work at home. (Colin Perkel/The Canadian Press)

“It’s when do we get on the other side of this crisis … [and] resume economic activity. That’s what it’s going to take. And particularly on the driving side. We’ve had such a hit to gasoline demand. It’s really when people are willing to drive again.


Download the Cost of Living podcast for more on the economics of everyday life from CBC Radio.

Let’s block ads! (Why?)



Source link

Business

Bell selects Ericsson, not Huawei, to build 5G cellular network – CBC.ca

Published

on


BCE Inc. has decided to partner with Swedish telecommunications equipment maker Ericsson to build its 5G network in Canada.

The Montreal-based telecom firm said in a press release Tuesday that it will use Ericsson equipment to build its next generation cellular network, known as 5G.

Ericsson is already a component supplier for Bell’s existing networks, including 4G, but 5G will allow the network to handle far more quantities of data, faster.

“Bell’s 5G strategy supports our goal to advance how Canadians connect with each other and the world, and Ericsson’s innovative 5G network products and experience on the global stage will be key to our rollout of this game-changing mobile technology across Canada,” BCE president Mirko Bibic said, citing Ericsson’s existing role in 92 other 5G cellular networks around the world.

The decision means BCE will not be using 5G equipment from Huawei, a Chinese equipment maker that is currently installed on existing networks around the world, including Bell’s. But many countries around the world say Huawei’s close relationship with the Chinese government could expose cellular networks to spying.

The United States and Australia have forbidden telecom firms in those countries from working with Huawei to develop their 5G networks.

The Canadian government is currently mulling whether to allow Huawei to work on Canadian 5G networks, as part of a comprehensive governmental review of cybersecurity protocols.

BCE rival Rogers also announced in 2018 that it would work with Ericsson on its 5G network. Telus, meanwhile, announced this past February that it would use Huawei equipment in its 5G network.

Let’s block ads! (Why?)



Source link

Continue Reading

Business

Stock market news live updates: Stock futures steady amid unrest, US-China tensions – Yahoo Style

Published

on


Stocks were slightly positive Monday, steadying against a backdrop of protracted protests in some of the nation’s largest cities, many of which had already been struggling to reopen amid the coronavirus outbreak.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="[Click here to read what’s moving markets heading into Tuesday, June 2]” data-reactid=”17″>[Click here to read what’s moving markets heading into Tuesday, June 2]

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Market participants also eyed tensions between the U.S. and China, after Bloomberg and Reuters reported China had ordered some state-run agricultural companies to halt purchases of American farm goods.” data-reactid=”18″>Market participants also eyed tensions between the U.S. and China, after Bloomberg and Reuters reported China had ordered some state-run agricultural companies to halt purchases of American farm goods.

This came after President Donald Trump on Friday said his administration would take action to respond to China’s crackdown on Hong Kong, including removing Hong Kong’s preferential trade status with the U.S. and requesting a working group study Chinese companies listed on U.S. stock exchanges for potential unfair financial practices.

The protests over the past several days centered on constituents’ outrage over the death of George Floyd, who was killed by police in Minneapolis last week in one of the latest public instances of police brutality against an unarmed black man.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Demonstrations since erupted in dozens of cities across the nation, accompanied by looting and destruction of some retail stores and other large and small businesses. The escalation of these protests led governors in two dozen states including Minnesota, California, Illinois and Washington to activate the National Guard, along with mayors in some cities to impose curfews.” data-reactid=”21″>Demonstrations since erupted in dozens of cities across the nation, accompanied by looting and destruction of some retail stores and other large and small businesses. The escalation of these protests led governors in two dozen states including Minnesota, California, Illinois and Washington to activate the National Guard, along with mayors in some cities to impose curfews.

“Mass gatherings could spark concerns about a second wave of the virus. We’ll let the medical experts handle this debate, but will weigh in on why this matters for stocks,” Lori Calvasina, head of U.S. equity strategy for RBC Capital Markets, said in a note Monday. “It bears on how quickly the US economy can get back to something resembling normal. Second wave fears could halt reopening or keep behavior cautious.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A number of major companies temporarily changed operations as they assessed the violence that ensued in recent days. Target (TGT) which is headquartered in Minneapolis and has 73 stores in Minnesota, closed or adjusted hours at 200 stores this weekend. Meanwhile, tech giant Amazon (AMZN) shifted delivery routes in some cities due to the protests, Amazon confirmed in an email to Yahoo Finance after a Bloomberg report, and Apple (AAPL) reportedly extended store closures of some of its outlets.” data-reactid=”23″>A number of major companies temporarily changed operations as they assessed the violence that ensued in recent days. Target (TGT) which is headquartered in Minneapolis and has 73 stores in Minnesota, closed or adjusted hours at 200 stores this weekend. Meanwhile, tech giant Amazon (AMZN) shifted delivery routes in some cities due to the protests, Amazon confirmed in an email to Yahoo Finance after a Bloomberg report, and Apple (AAPL) reportedly extended store closures of some of its outlets.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A number of other corporate executives – including BlackRock CEO Larry Fink, Goldman Sachs CEO David Solomon, Citi CFO Mark Mason and Apple CEO Tim Cook – also issued public remarks on the protests and the events that spurred them.” data-reactid=”24″>A number of other corporate executives – including BlackRock CEO Larry Fink, Goldman Sachs CEO David Solomon, Citi CFO Mark Mason and Apple CEO Tim Cook – also issued public remarks on the protests and the events that spurred them.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="These developments coincided with a historic downturn in the U.S. economy, rendering tens of millions of Americans jobless as the coronavirus pandemic and measures to contain it swept the country and world. Though many states and cities across the U.S. have begun to undergo a phased reopening process, many economists expect domestic data to hold at very low levels for now. The Labor Department’s May jobs report set for release later this week is expected to show the unemployment rate jump to a record high of 19.6%,&nbsp;the highest based on monthly&nbsp;Bureau of Labor Statistics (BLS) data spanning back to 1948.&nbsp;” data-reactid=”25″>These developments coincided with a historic downturn in the U.S. economy, rendering tens of millions of Americans jobless as the coronavirus pandemic and measures to contain it swept the country and world. Though many states and cities across the U.S. have begun to undergo a phased reopening process, many economists expect domestic data to hold at very low levels for now. The Labor Department’s May jobs report set for release later this week is expected to show the unemployment rate jump to a record high of 19.6%, the highest based on monthly Bureau of Labor Statistics (BLS) data spanning back to 1948

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="4:04 p.m. ET: Stocks rise in first session of June, stabilizing amid protests and US-China tensions” data-reactid=”27″>4:04 p.m. ET: Stocks rise in first session of June, stabilizing amid protests and US-China tensions

Here were the main moves in markets as of 4:04 p.m. ET:

  • S&P 500 (^GSPC): +11.42 (+0.38%) to 3,055.73

  • Dow (^DJI): +91.91 (+0.36%) to 25,475.02

  • Nasdaq (^IXIC): +62.18 (+0.66%) to 9,552.05

  • Crude (CL=F): +$0.06 (+0.17%) to $35.55 a barrel

  • Gold (GC=F): -$1.20 (-0.07%) to $1,750.50 per ounce

  • 10-year Treasury (^TNX): +1.4 bps to yield 0.6620%

2:44 p.m. ET: US crude oil prices tick down 0.1%, or 5 cents, to $35.44 per barrel

Futures for U.S. West Texas intermediate edged down 0.1%, or 5 cents, to $35.44 per barrel Monday. The commodity held onto May’s gains, which sent prices up more than 80% for the month as states’ reopenings stoked hopes of a rebound in energy demand.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Earlier in the session Monday, multiple media outlets reported that OPEC and Russia were weighing extensions of oil output cuts, which would help ease months-long concerns of a global supply glut.” data-reactid=”39″>Earlier in the session Monday, multiple media outlets reported that OPEC and Russia were weighing extensions of oil output cuts, which would help ease months-long concerns of a global supply glut.

12:45 p.m. ET: New York Governor Andrew Cuomo considers curfew for NYC amid unrest

New York Governor Andrew Cuomo said during his daily coronavirus briefing Monday he is weighing a possible curfew in New York City following unrest, lootings and vandalism of stores over the weekend.

“Something has to get done because last night was not acceptable,” he said during the briefing.

Separately, New York state reported a daily death toll of 54 on May 31 from the coronavirus, or the lowest level so far in the period after the virus’s peak. Overall, new cases of the coronavirus in New York state fell below 1,000 for the first time in 11 weeks.

10:13 a.m. ET: Stocks turn positive, led by Financials

The three major indices turned positive Monday morning after opening slightly lower. The Financials and Consumer Discretionary sectors led gains in the S&P 500, while Boeing, American Express and Goldman Sachs led advances in the Dow.

Here’s where the three major indices were trading as of 10:13 a.m. ET:

  • S&P 500 (^GSPC): +5.23 points (+0.17%) to 3,049.54

  • Dow (^DJI): +57.14 points (+0.23%) to 25,440.25

  • Nasdaq (^IXIC): +26.33 points (+0.28%) to 9,518.12

10:03 a.m. ET: Construction spending falls 2.9% April, or less than expected

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Construction spending in the U.S. declined by 2.9% in April over the prior month, the Census Bureau said in its monthly report. This was a less drastic decline than expected, with consensus economists bracing for a 7.0% drop in construction spending for the month.” data-reactid=”59″>Construction spending in the U.S. declined by 2.9% in April over the prior month, the Census Bureau said in its monthly report. This was a less drastic decline than expected, with consensus economists bracing for a 7.0% drop in construction spending for the month.

March’s construction spending was revised to unchanged from a 0.9% gain previously reported.

By category, private construction spending declined 3.0% in April, comprising a 4.5% drop in residential construction spending and a 1.3% drop in nonresidential spending. Government construction spending fell 2.5% in April.

10:00 a.m. ET: ISM Manufacturing PMI ticks up less than expected in May

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Institute for Supply Management’s manufacturing purchasing managers’ index (PMI) rose to 43.1 in May, but missed consensus estimates for 43.8. However, the reading stabilized slightly from April’s 11-year low of 41.5.” data-reactid=”64″>The Institute for Supply Management’s manufacturing purchasing managers’ index (PMI) rose to 43.1 in May, but missed consensus estimates for 43.8. However, the reading stabilized slightly from April’s 11-year low of 41.5.

Subindices tracking new orders, prices paid and employment each rose marginally from April’s low levels. All of these were still in contractionary territory, or below the neutral level of 50.0.

“The coronavirus pandemic impacted all manufacturing sectors for the third straight month. May appears to be a transition month, as many panelists and their suppliers returned to work late in the month,” Timothy Fiore, Chair of the Institue for Supply Management, said in a statement. “However, demand remains uncertain, likely impacting inventories, customer inventories, employment, imports and backlog of orders.”

9:45 a.m. ET: Decline in U.S. manufacturing activity suggests ‘any recovery will be frustratingly slow’: IHS Markit

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="U.S. manufacturing activity held in deeply contractionary territory in May, according to IHS Markit’s final monthly purchasing managers’ index. The manufacturing PMI registered at 39.8 in the final print, matching the advance print. This followed a reading of 36.1 in April.” data-reactid=”69″>U.S. manufacturing activity held in deeply contractionary territory in May, according to IHS Markit’s final monthly purchasing managers’ index. The manufacturing PMI registered at 39.8 in the final print, matching the advance print. This followed a reading of 36.1 in April.

Readings below the neutral level of 50.0 indicate contraction in a sector.

“Manufacturing remained in a deep downturn in May, as measures taken to contain the spread of COVID-19 continued to cause production losses, disrupt supply chains and hit demand,” Chris Williamson, chief business economist at IHS Markit, said in a statement. “Job losses meanwhile continued to run at one of the highest rates in over a decade, and pricing power has collapsed.”

“There remains a high risk that any recovery will be frustratingly slow as ongoing social distancing measures, high unemployment, job insecurity and damaged balance sheets constrain consumer and business spending,” he added. “The recovery will of course also fade quickly if virus infections start to rise again. For now, however, we focus on the good news that we may be past the worst in terms of the economic decline.”

9:31 a.m. ET: Stocks open mostly lower

Here were the main moves in markets, as of 9:31 a.m. ET:

  • S&P 500 (^GSPC): -9.27 points (-0.3%) to 3,035.04

  • Dow (^DJI): -98.94 points (-0.39%) to 25,284.17

  • Nasdaq (^IXIC): -4.89 points (-0.03%) to 9,485.95

  • Crude (CL=F): -$0.92 (-2.59%) to $34.57 a barrel

  • Gold (GC=F): -$5.90 (-0.43%) to $1,745.80 per ounce

  • 10-year Treasury (^TNX): +3.5 bps to yield 0.679%

7:23 a.m. ET Monday: Stock futures mixed

Here were the main moves in markets, as of 7:23 a.m. ET:

  • S&P 500 futures (ES=F): 3,044.00, up 2 points (+0.07%)

  • Dow futures (YM=F): 25,422.00, up 44 points (+0.17%)

  • Nasdaq futures (NQ=F): 9,540.5, down 19.75 points (-0.21%)

  • Crude (CL=F): -$0.99 (-2.94%) to $32.72 a barrel

  • Gold (GC=F): -$8.20 (-0.47%) to $1,743.50 per ounce

  • 10-year Treasury (^TNX): +2 bps to yield 0.664%

6:04 p.m. ET Sunday: Stock futures open lower

Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:04 p.m. ET:

  • S&P 500 futures (ES=F): 3,017.75, down 24.25 points (-0.8%)

  • Dow futures (YM=F): 25,378.00, down 79 points (-0.31%)

  • Nasdaq futures (NQ=F): 9,476.00, down 84.25 points (-0.88%)

Protesters completely surround a line of police officers during nationwide unrest following the death in Minneapolis police custody of George Floyd, in Raleigh, North Carolina, U.S. May 30, 2020. Picture taken May 30, 2020. REUTERS/Jonathan Drake
Protesters completely surround a line of police officers during nationwide unrest following the death in Minneapolis police custody of George Floyd, in Raleigh, North Carolina, U.S. May 30, 2020. Picture taken May 30, 2020. REUTERS/Jonathan Drake

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on&nbsp;Twitter,&nbsp;Facebook,&nbsp;Instagram,&nbsp;Flipboard,&nbsp;LinkedIn, and&nbsp;reddit.” data-reactid=”112″>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Find live stock market quotes and the latest business and finance news” data-reactid=”113″>Find live stock market quotes and the latest business and finance news

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For tutorials and information on investing and trading stocks, check out Cashay” data-reactid=”114″>For tutorials and information on investing and trading stocks, check out Cashay

Let’s block ads! (Why?)



Source link

Continue Reading

Business

North American markets gain ground to start the week – BNNBloomberg.ca

Published

on


North American equity markets clawed back ground into the close of Monday’s trade, with the S&P/TSX Composite Index up 0.29 per cent, the S&P 500 gaining 0.38 per cent, the Dow Jones Industrial Average rising 0.36 per cent and the Nasdaq Composite Index up 0.66 per cent.

Equity markets had been mixed in earlier trading, as investors weighed the competing factors of economic reopenings and the rising tensions between the United States and China.

In Toronto, four of the 11 TSX subgroups closed in positive territory, with consumer discretionary, financials and materials leading the way. Consumer staples, information technology and health care were the lead laggards.

A big part of the weakness in health care stocks was the underperformance of Canopy Growth Corp., which finished the day as the worst performer on the index after a string of analyst downgrades. The analyst community has expressed concerns over the company’s lack of a clear path to sustained profitability after it withdrew its forecast last week.

Oil prices fluctuated throughout the day, with U.S. benchmark West Texas Intermediate up 0.1 per cent to US$35.53 per barrel. Alberta’s Western Canadian Select was up 3.16 per cent to US$29.08 per barrel.

The Canadian dollar gained more than a full cent against its U.S. counterpart to trade at 73.68 cents U.S., though the greenback was weaker against all of its major-market peers.

1:00 p.m. ET: North American equity markets rebound, oil pares losses

North American equity markets rebounded into the midday trade, with the S&P/TSX Composite Index and Dow Jones Industrial Average up 0.3 per cent each, the S&P 500 gaining 0.4 per cent and the Nasdaq Composite Index up 0.66 per cent.

In Toronto, only four of the 11 TSX subgroups were in positive territory, led by consumer discretionary, financials and materials stocks. Information technology, consumer staples and health care were the lead laggards.

120 of the index’s 230 members were higher with a pair of cannabis stocks bookending the composite. HEXO Corp. was the lead gainer on the TSX, up 10 per cent after Health Canada approved its facility in Bellville, Ontario. On the flip side, Canopy Growth Corp., was the biggest percentage loser, down nine per cent, after a slew of analyst downgrades after the company shelved its forecast for a path to profitability late last week.

Oil pared some of its earlier losses, with U.S. benchmark West Texas Intermediate down a little more than one-and-a-half per cent to trade at US$34.90 per barrel. Alberta’s Western Canadian Select was essentially unchanged at US$28.16 per barrel.

10 a.m. ET – North American stocks slip, oil falls as U.S.-China tensions escalate

North American equity markets kicked off the week in modestly negative territory, with the S&P/TSX Composite Index down a tenth of a per cent, the Dow Jones Industrial Average and S&P 500 both falling 0.4 per cent and the Nasdaq Composite Index down 0.2 per cent.

Markets were under that modest pressure amid signs of a re-escalation of tensions between the United States and China, with Bloomberg News reporting Beijing has ordered a halt to imports of some American farm goods. Meanwhile, the U.S. is also facing a wave of civil unrest as demonstrators take to the streets to protest the killing of George Floyd by Minneapolis police, which has prompted some American cities to implement curfews.

Oil prices fell in the wake of those tensions, outweighing the impact of speculation the OPEC+ group of producers could be poised to implement a short extension of its output cuts in order to put some upward pressure on crude prices. U.S. benchmark West Texas Intermediate fell 2.5 per cent to US$34.60 per barrel, while Alberta’s Western Canadian Select dropped three per cent to US$27.34.

In Toronto, that weakness in crude weighed on the energy sector in early trading.

Another point of weakness was Canopy Growth Corp. The company’s shares fell about seven per cent after the firm was downgraded by four analysts following the cannabis producer’s disappointing quarterly results late last week.

The Canadian dollar rose a third of a cent against its American counterpart to 72.93 cents U.S., though the U.S. dollar was broadly weaker against its major global peers.

Let’s block ads! (Why?)



Source link

Continue Reading

Trending