The Daily Chase: Oil in spotlight after U.S. reserve release; Laurentian warns of profit hit
BNN Bloomberg
Seems like just yesterday we were marvelling about oil being at seven-year highs as OPEC+ defied calls to ramp up output more aggressively. Now, West Texas Intermediate is nearing correction territory as it slumps a little more than nine per cent from its recent high on Oct. 26.
Seems like just yesterday we were marvelling about oil being at seven-year highs as OPEC+ defied calls to ramp up output more aggressively. Now, West Texas Intermediate is nearing correction territory as it slumps a little more than nine per cent from its recent high on Oct. 26 as traders brace for a coordinated release from strategic petroleum reserves. And that release landed early this morning, as U.S. President Joe Biden announced the release of 50 million barrels from the Strategic Petroleum Reserve. Biden added that America’s release will happen “in parallel” with moves by China, Japan, India, Korea, and the United Kingdom. All of this begs the question of how OPEC+ will respond – and what it all means for the energy subgroup that’s been the TSX’s star performer this year.
LAURENTIAN BANK KITCHEN SINK
Chief Executive Rania Llewellyn is getting the kitchen sink out of the way before her company reports full quarterly results. Laurentian warned this morning that its fiscal fourth-quarter earnings will be cut by $163 million (after-tax) as a result of findings from a strategic review. The biggest drivers are $93 million in impairment charges due to struggles in the core personal banking business, and a $49-million charge as Laurentian decides to adopt a hybrid work model.
IN CONVERSATION WITH MIKE ROSE
Is there a more widely loved Canadian chief executive? Mike Rose, who is seemingly praised on a daily basis by BNN Bloomberg guests for his stewardship of Tourmaline Oil, joins Commodities this morning. Most recently, Tourmaline reported record quarterly cash flow and hinted at more special dividends in the offing. Don’t miss Rose in conversation with Andy at 11:20 a.m. – great day to have him, in light of the aforementioned backdrop.
B.C. SUPPLY CHAIN RELIEF
