The Daily Chase: Oil, natural gas drop continues; Senate nears deal to increase debt ceiling
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The energy rally’s reversal continues this morning. What’s an investor to do amid this whipsawing? We’ll ask investment professionals.
The energy rally’s reversal continues this morning. West Texas Intermediate crude slipped below US$75 per barrel just one day after coming within 22 cents of hitting US$80 for the first time since 2014, amid surprisingly robust U.S. inventories. And the abrupt rout in natural gas prices, courtesy of Russia President Vladimir Putin’s signaling yesterday, continues: at one point this morning, U.K. nat gas futures were down 23.6 per cent. What’s an investor to do amid this whipsawing? We’ll ask investment professionals.
One bright spot: credit to our Bloomberg partners for pointing out data showing Canadian oil exports to the U.S. have surged to more than 4 million barrels per day for only the third time on record, thanks in part to Enbridge’s Line 3 replacement entering into service.
U.S. DEBT CEILING RELIEF
The drag from energy stocks limited the S&P/TSX Composite Index’s gains yesterday amid a broad swing higher in the markets on word that U.S. Senate Republican Leader Mitch McConnell was prepared to kick the can down the road on America’s debt limit. Chuck Schumer, who leads the Senate Democrats, said early today that “good progress” is being made on a pact that would allow the U.S. Treasury to service its obligations until December. Futures are pointing to more gains at the start of trading today as investors suggest they’ll worry about December in December.
DON’T MISS THESE INTERVIEWS
Turnarounds are the common denominators in a pair of elite interviews today. First, Ian L. Edwards joins us this morning for the first time since he took the reins at SNC-Lavalin to talk about his plans for restructuring the engineering giant, and the hazards along the way as it continues to be haunted by decades-old alleged corruption problems. And at 2 p.m. we’ve got Air Canada CEO Michael Rousseau lined up to discuss the long climb out of the crushing impact of COVID-19 and what’s ahead, particularly in light of yesterday’s announcement by the Feds about vaccine mandates.
