Canadian stocks advanced for a fifth day, as gains in banks and consumer companies offset declines by oil producers in a holiday-shortened trading session.
Royal Bank of Canada and Bank of Nova Scotia increased as financial services companies rose 0.5 percent as a group. Pop and bottled water maker Cott Corp., the fourth best-performing stock in the Standard & Poor’s/TSX Composite Index this year, added 1.7 percent.
The S&P/TSX added 0.3 percent, or 33.67 points, to 13,318.58 at 10:44 a.m. in Toronto, rising for the fifth consecutive day, its longest wining streak since Oct. 8. Volume in the gauge was 45 percent lower than the 30-day average at this time of the day.
The equity benchmark has rallied 2.3 percent this week. The S&P/TSX will close at 1 p.m. today for the Christmas holiday and will re-open on Dec. 29.
Goldcorp Inc. and Barrick Gold Corp. rose at least 1.2 percent as the metal climbed after two days of losses. The Bloomberg Dollar Spot Index fell a fifth day, the longest run of declines since April, making commodities including gold more attractive.
Energy producers slipped 0.8 percent as a group to halt a two-day rally. The industry remains the worst-performing among 10 in the S&P/TSX this year, down 24 percent as slowing economic growth in China and Europe and a supply glut in crude battered commodities prices around the world.
Dominion Diamond Corp. added 0.7 percent after two directors resigned for personal reasons, the company said. The diamond mining company has jumped 17 percent this week after coming under pressure for change from a group of investors led by Toronto-based hedge fund K2 & Associates Investment Management.
Equity valuations in the S&P/TSX have declined 9.5 percent to about 20.5 times earnings from a 2015 high of 22.7 on April 15, according to data compiled by Bloomberg. The S&P/TSX is among the worst-performing developed equity markets this year, ahead of only Singapore and Greece. The benchmark is down 1.1 percent for December and 9 percent for the year, headed for the worst annual retreat since 2011.
Oil Prices News: Oil Gains Following Drops in US Crude Inventories
Oil Prices Gain Following Drops in US Crude Inventories and OPEC High Compliance Level
Global oil prices extended their 2 percent gains on Thursday after data showed U.S crude oil inventories declined last week.
The price of Brent crude oil, against which Nigerian oil is measured, gained 0.2 percent or 7 cents to $43.39 a barrel as at 12:10 pm Nigerian time. While the U.S. West Texas Intermediate (WTI) crude appreciated by 8 cent or 0.2 percent to $41.12 barrels.
Oil prices extended their three days gain after the American Petroleum Institute said the U.S crude inventories declined by 5.4 million barrels in the week ended October 9.
The report released after the market closed on Wednesday revealed that distillate stockpiles, which include diesel and heating oil, declined by 3.9 million barrels. Those stated drawdowns almost double analysts’ projections for the week.
“Much of the fall is due to the effects of Hurricane Delta shuttering U.S. production in the Gulf of Mexico, and as such, will be a transitory effect,” said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.
“Therefore, I am not getting too excited that a turn of direction is upon markets, although both contracts are approaching important technical resistance regions.”
Also, the report that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, referred to as OPEC+ attained 102 percent compliance level with their oil production cuts agreements bolstered global oil outlook. Suggesting that demands for the commodity are likely not growing and could drag down prices in few weeks, especially when one factor in the reopening of Libya’s Sharara oil field, workers returning to operation in Norway and the Gulf of Mexico.
Oil Prices Gain on Tuesday Despite Expected Surge in Global Oil Supplies
Oil Prices Rise Despite Expected Surge in Global Oil Supplies
Oil prices gained on Tuesday despite Libya opening Sharara oil field for production, labour in Norway reaching an agreement with oil firms to return back to work and oil workers in the U.S returning to the Gulf of Mexico region after the Hurrican Delta.
Brent crude oil, against which Nigerian oil price is measured, gained 1.77 percent to $42.46 per barrel as at 11:15 am Nigerian time on Tuesday.
While the US West Texas Intermediate (WTI) crude oil gained 2 percent to close at $40.22 per barrel.
The improvement in prices was after oil prices plunged as much as 3 percent on Monday following a resolution reached by Libyan rebels and government to commence oil production at the nation’s largest oil field, Sharara Oil Field.
This coupled with labour agreement with oil firms in Norway was expected to boost global oil supplies and eventually weighed on prices and disrupt OPEC+ production cuts strategy.
However, prices surged after Nancy Pelosi said she would commence talks on $1.8 trillion stimulus package following President Trump’s return to the White House after he was rushed to hospital following a positive COVID-19 test.
Joe Biden Win Could Boost Oil Prices, Says Goldman Sachs
Oil Prices to Surge Once Joe Biden Wins -Goldman Sachs
Goldman Sachs, one of the world’s largest investment banks, has said Joe Biden win could boost global oil prices despite weak global economic outlook and COVID-19 negative impacts on the world’s growth.
The investment bank, however, remains bullish on both oil and gas prices regardless of the election outcome in November.
The bank sees oil and gas demand rising enough in 2021 to supersede election results but explained that Biden win could bolster prices by making production more expensive and more regulated for producers in the U.S.
In a note written by the bank’s commodities team on Sunday, it said “We do not expect the upcoming U.S. elections to derail our bullish forecasts for oil and gas prices, with a Blue Wave likely to be in fact a positive catalyst.”
“Headwinds to U.S. oil and gas production would rise further under a Joe Biden administration, even if the candidate has struck a centrist tone.”
Goldman Sachs explained that if incumbent, Trump, is re-elected with pro-oil and gas policies in place that “its impact would likely remain modest at best,” Goldman’s analysts wrote, “given the more powerful shift in investor focus to incorporate ESG metrics and the associated corporate capex re-allocation away from fossil fuels.”
Forex2 weeks ago
Naira Improves Against Global Counterparts on Black Market
Business4 weeks ago
Npower News on Permanency for Batch A, B
Business7 days ago
Buhari Budgets N420 Billion for Npower, Other Social Investment Programmes in 2021 Budget
News4 weeks ago
Jumia Boss Juliet Anammah is Now Flour Mills Board of Director
Cryptocurrency4 weeks ago
Paxful to Build School in Nigeria Under Its 100 School Initiative to Support Emerging Markets
Technology4 weeks ago
Dell Partners Other Firms to Establish Tech Centre in Nigeria
Government2 weeks ago
#Endsars: Naira Marley Calls Off Protest following Police Invitation
Forex4 weeks ago
CBN Moves Against 55 Companies, Individuals for Forex Infractions