SIA Wealth Morning Minutes Banner

OPEC+ Impasse Puts Crude Oil In The Spotlight

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook
Share on email
Email

With the US closed for a holiday, equity markets around the world have been relatively quiet overnight with the Nikkei and the Hang Seng both falling about 0.6%, the Dax dipping 0.2%, and the FTSE rising about 0.3%.

Commodities have been more active today with the potential for movement in Crude Oil depending on what happens with the ongoing OPEC+ meeting. Starting last Thursday and continuing through the weekend, the group, led by Saudi Arabia, has been fighting with the UAE over production levels. The main group agreed to a 2.0 mmbbl/d increase by the end of the year (400,000 bbl/d increase over the five months from August to December), and then to hold production flat through 2022, while the UAE is looking for a larger increase to its quota.

So far WTI and Brent crude oil are holding their ground up 0.3% this morning and trading above $75.00/bbl but sentiment could change depending on whether an agreement is reached (and if so, what the terms are), talks collapse completely, or talks drag on further.

Meanwhile, in other commodity action, high temperatures across North America continue to boost cooling demand boosting natural gas another 0.8%. Copper and platinum, meanwhile, are both up 1.4%.

Service PMI reports are out from European countries this morning and have been coming in better than expected overall, led by the UK (62.4 vs street 61.7), with Germany lagging a bit (57.5 vs street 58.1). US non-manufacturing PMI comes out tomorrow due to today’s US holiday, followed by the Canadian Ivey PMI report on Wednesday. Later in the week, Chinese inflation comes out Thursday night, followed by Canadian employment on Friday morning.

Its a very quiet week for earnings reports, but we are in confession season, the time of the quarter where companies sometimes pre-announce particularly strong or particularly poor results, ahead of earnings season which starts up sometime next week.

Disclaimer: 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. SIAWM 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.

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook
Share on email
Email

At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.

Colin Cieszynski, Chief Market Strategist
Market Commentary:

Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

Keep Reading

INTERNET EXPLORER NOTICE