Morning Minutes

Bank of Canada and OPEC+ Meet As Oil Keeps Climbing

Bank of Canada



As the war in Ukraine continues, concerns about the potential impact that military actions and sanctions could have on oil supply continue to drive energy prices higher. WTI and Brent crude are both up another 7.0% this morning with WTI trading up above $110.00/bbl, and the US gasoline price climbing 5.2% to trade near $3.25/gallon. OPEC+ are holding their usual monthly meetings on production this week. While the group is widely expected to continue its current production restoration program, it may come under some pressure to increase production faster or to at least present a plan in case supply is impacted further.

Inflation has been on the rise already and spiking energy prices appear to be making the problem worse, increasing pressure on central banks to take action. The Bank of Canada is meeting today with a decision and statement due at 10:00 am EDT. Governor Macklem and co are widely expected to raise the overnight rate by 0.25% to 0.50%. Considering how far central banks have fallen behind the curve, a 0.50% increase can’t be ruled out. Considering that New Zealand’s central bank recently raised its main interest rate, the war in Ukraine appears unlikely to change plans but investors should note that with inflation running so hot lately, any delay now may just exacerbate the problem and could potentially force central banks to raise rates faster later.  

US index futures are up 0.4%-0.5% today on positive domestic news. ADP private sector payrolls increased by 475K in February, which beat the 388K the street was expecting. More importantly, January payrolls were revised sharply upward from -301K to +509K.  Overseas, the Dax is up 0.4% while the FTSE is up 0.7%. Metals action is mixed. Gold is down 0.6% and silver is down 1.1% while copper is up 2.2% and platinum is up 1.3%.

Subscribe to the Morning Minutes:

Today's earnings reports and market activity, delivered right to your inbox.

Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

Read More

Legal and Regulatory Disclosures

Terms and Conditions:
This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, Advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIA Wealth Management Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.