Yesterday’s energy market action:
- After touching an almost 2-year high earlier this week, President Trump once again publicly called on OPEC to lower oil prices. The news sent both Brent and WTI lower by almost 3% for the day.
- Canadian crude benchmarks declined in sympathy with WTI, also falling over 3%. Discounts on Canadian light and heavy crude were unchanged, while the condensate discount narrowed by US$0.65.
- Baker Hughes reported another big drop in US oil rig counts this week, estimated to have fallen by 20, leaving 805 rigs in service.
Today’s treasury, currency and equity market action:
- According to Statistics Canada, average weekly earnings were once again unchanged in February, dropping the annualized increase from 2% to just 1.1%, well below the national inflation rate. The loonie perked up slightly on Friday, but ended the week down almost 0.5 cents from the previous week.
- First quarter US GDP growth was estimated at 3.2%, much better than economists were forecasting. Despite the positive results, US bonds yields and the US dollar both moved lower on Friday.
- Except for Shanghai and London, most major markets moved higher on Friday. The NYSE rose 0.6%, while the S&P 500 gained 0.5%. The S&P 500 and NASDAQ closed out the week at a new all-time record high.
- Energy was the biggest drag on US markets, due in part to dismal earnings results out of heavy-weights ExxonMobil and Chevron.
- The TSX rose 0.2%, despite a 1.5% decline in energy stocks, also the worst performing sector for the day.
