2024-09-10 15:33

Canadian dollar drops 0.3% against the greenback Touches its weakest level since Aug. 23 at 1.3615 Price of U.S. oil decreases 3.6% Ten-year yield falls 9.4 basis points to 2.916% TORONTO, Sept 10 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Tuesday as oil prices fell and the Bank of Canada said global trade disruptions could make it harder for the central bank to consistently meet its 2% inflation target. The loonie was trading 0.3% lower at 1.36 to the U.S. dollar, or 73.53 U.S. cents, after touching its weakest intraday level since Aug. 23 at 1.3615. "Cross-asset conditions are in the driving seat for USD-CAD today, with both falls for oil and equities conspiring to weigh on the loonie," said Nick Rees, a senior FX market analyst at Monex Europe Ltd. Global shares (.WORLD) , opens new tab edged down and the price of oil, one of Canada's major exports, extended its recent declines. U.S. crude oil futures were trading 3.6% lower at $66.23 a barrel as a weaker demand outlook and risks of global oversupply continued to weigh on the market. With globalization slowing, the cost of global goods might not decline to the same degree, and this could put more upward pressure on inflation, Bank of Canada Governor Tiff Macklem said in a speech to the Canada-UK Chamber of Commerce in London. Still, speaking with reporters, Macklem left the door open to larger interest rate cuts if growth falls short of expectations. The BoC last week cut its benchmark rate for the third time since June, lowering it by 25 basis points to 4.25%. The U.S. dollar (.DXY) , opens new tab rose against a basket of major currencies ahead of U.S. inflation data on Wednesday that could guide expectations for the pace of expected rate cuts by the Federal Reserve. Canadian government bond yields moved lower across a flatter curve. The 10-year was down 9.4 basis points at 2.916%, trading near its lowest level in 16 months. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-falls-nearly-3-week-low-oil-prices-slide-2024-09-10/

2024-09-10 12:54

LONDON, Sept 10 (Reuters) - OPEC on Tuesday cut its forecast for global oil demand growth in 2024 reflecting data received so far this year and also trimmed its expectation for next year, marking the producer group's second consecutive downward revision. The weaker outlook further underscores the challenge faced by OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia in balancing the market. Last week, OPEC+ delayed a plan to start pumping more oil after prices hit the lowest in 2024. On Tuesday, OPEC in a monthly report said world oil demand will rise by 2.03 million barrels per day (bpd) in 2024, down from growth of 2.11 million bpd it expected last month China accounted for the bulk of the downgrade, as OPEC trimmed its forecast of Chinese growth to 650,000 bpd in 2024 from 700,000 bpd. Oil use in the world's second largest economy was facing headwinds from economic challenges and moves to cleaner fuels, OPEC said. "Looking ahead, China's economic growth is expected to remain well supported," OPEC said in the report. "However, headwinds in the real estate sector and the increasing penetration of LNG trucks and electric vehicles are likely to weigh on diesel and gasoline demand going forward." Oil added to an earlier decline after the report was issued, with Brent crude trading below $71 a barrel, near the lowest price since March 2023. There is a wider than usual split between forecasters on the strength of oil demand growth in 2024, partly due to differences over China and more broadly over the pace of the world's transition to cleaner fuels. The reduction still leaves OPEC at the top end of industry estimates. OPEC also cut its 2025 global demand growth estimate to 1.74 million bpd from 1.78 million bpd. Sign up here. https://www.reuters.com/business/energy/opec-again-lowers-2024-2025-global-oil-demand-growth-view-2024-09-10/

2024-09-10 12:54

DAKAR, Sept 10 (Reuters) - The death toll from a migrant boat accident off the coast of Senegal has risen to 26 after the discovery of an additional 17 bodies on Tuesday, the Senegalese navy said in a post on X. The boat - a narrow, wooden fishing vessel known as a pirogue - was carrying over 100 migrants from the town of Mbour and it capsized after only 4 km (2.5 miles) of navigation, state broadcaster Radio Television Senegalaise (RTS) said late on Sunday. A spokesperson for the West African country's armed forces told Reuters on Monday that the navy had sent a plane and two boats to search for the dead and survivors. Sign up here. https://www.reuters.com/world/africa/death-toll-capsized-migrant-boat-offshore-senegal-rises-26-2024-09-10/

2024-09-10 12:48

HOUSTON, Sept 10 (Reuters) - Energy pipeline operator Enbridge (ENB.TO) , opens new tab has pulled employees from several offshore U.S. Gulf of Mexico platforms, the company told customers, as Tropical Storm Francine advanced toward a landfall in Louisiana. Francine has shut in oil and gas production at offshore platforms operated by Chevron (CVX.N) , opens new tab, Exxon Mobil (XOM.N) , opens new tab and Shell (SHEL.L) , opens new tab. The first official measure of the storm's impact on U.S. energy production will be released later on Tuesday by U.S. regulator the Bureau of Safety and Environmental Enforcement. Enbridge, which manages an extensive network of offshore pipelines funneling oil and gas to onshore plants, evacuated staff from three offshore platforms. Operations are continuing at each using remote operators, it said in notices to customers. Staff were removed from South Marsh Island 76, Ship Shoal 207 and 332 platforms, the customer notices said. South Marsh Island 76 connects a 1 billion cubic feet per day natural gas offshore pipeline. The Manta Ray Gas Gathering system declared force majeure at its Green Canyon 158 Brutus receipt point and stopped receiving natural gas, Enbridge told customers. Force majeure is a provision that allows a contract to be suspended due to unforeseen events. The receipt point would be returned to service once the company can replace a malfunctioning valve, Enbridge said. Sign up here. https://www.reuters.com/business/energy/enbridge-pulls-staff-offshore-platforms-storm-francine-advances-2024-09-10/

2024-09-10 12:14

By Promit Mukherjee and David Ljunggren OTTAWA, Sept 10 (Reuters) - Global trade disruptions could make it harder for the Bank of Canada to consistently meet its 2% inflation target, and it will have to balance the risks of controlling higher prices with ensuring economic growth, Governor Tiff Macklem said on Tuesday. Inflation in Canada has been consistently falling this year, pushed down by interest rates that were at a two-decade high of 5% for more than a year before the central bank cut rates three times in a row from June. Macklem said with globalization slowing, the cost of global goods might not decline to the same degree and this could put more upward pressure on inflation. "Trade disruptions may also increase the variability of inflation," he said in a speech to the Canada-UK Chamber of Commerce in London, citing the effect that supply shocks can have on prices. "Trade disruptions may mean larger deviations of inflation from the 2% target." This means the bank is focusing on risk management to balance inflation and growth and investing to better understand global supply chains, he said. Overall inflation in Canada in July fell to a 40-month low of 2.5%. Canada is a small open economy which relies heavily on trade and is therefore particularly vulnerable to disruptions. Supply shocks such as the one seen during the pandemic are creating a difficult trade-off for central banks since monetary policy cannot stabilize growth and inflation at the same time, Macklem said. "We're updating our models to use scenarios when periods of uncertainty make central forecasts less reliable," said Macklem, adding that the bank was using more micro-data to track and understand the consequences of trade and industrial policy. Canada needs to be ready for the trade disruptions that seem inevitable amid a changing trade landscape, he said. It has to ensure inflation is "low, stable and predictable even as global trade is being rewired, recast and redirected." He said while the BoC does not set trade policy, it needs to understand shifts in global trade because they affect Canadians and drive costs and inflation. The BoC in June became the first G7 central bank start to trim borrowing costs as inflation continued to stay within its target range of 1-3% since this year. The bank has cut its key policy rate by 75 basis point to 4.25% this year. (Reuters editorial) ((Reuters Ottawa bureau, [email protected] , opens new tab)) Keywords: CANADA CENBANK/ Sign up here. https://www.reuters.com/world/americas/bank-canada-says-trade-disruptions-could-hinder-inflation-fight-2024-09-10/

2024-09-10 12:08

MOSCOW, Sept 10 (Reuters) - Russia cut crude oil output in August by about 0.3% from July to 9.059 million barrels per day (bpd), the Organization of the Petroleum Exporting Countries (OPEC) said on Tuesday, citing data from secondary sources such as consultancies. This was still slightly above the quota agreed by the OPEC+ group of leading oil producers. The OPEC+ group of producers, comprising OPEC and allies including Russia, has made a series of deep output cuts since late 2022 to prop up the volatile oil market. Under OPEC+ deals and voluntary cuts, Russia's monthly quota for June to September stands at 8.98 million bpd. Russia has pledged to compensate for its overproduction since April with reductions in October and November this year and between March and September next year. Sign up here. https://www.reuters.com/markets/commodities/russia-cut-august-oil-output-by-03-july-opec-says-2024-09-10/