2024-11-13 21:34
TSX ends up 0.3% at 24,989.02 Eclipses Tuesday's record closing high Technology adds 2.4% Suncor climbs after results beat estimates Nov 13 (Reuters) - Canada's main stock index rose on Wednesday, led by gains for energy and technology shares, as oil prices climbed and U.S. inflation data supported expectations for a Federal Reserve interest-rate cut next month. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 66.01 points, or 0.3%, at 24,989.02, eclipsing the record closing high it posted on Tuesday. "I think we're mostly following the U.S. market today," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "Things just seem to be kind of settling out after all the humongous moves we've seen over the last week." U.S. benchmark the S&P 500 (.SPX) , opens new tab inched higher as U.S. consumer prices rose in line with expectations in October. The data showed underlying inflation continuing to run a little warmer but did not change expectations that the U.S. central bank would deliver a third rate cut in December against the backdrop of a softening labor market. The Toronto market's technology sector rose 2.4% as Shopify (SHOP.TO) , opens new tab added to the previous day's sharp gains. Shares of Suncor (SU.TO) , opens new tab advanced 4.2% after the company reported much better-than-expected third-quarter results. That helped lift the energy sector, which ended up 0.8%. U.S. crude oil futures settled 0.5% higher at $68.43 a barrel, helped by short-covering. CAE (CAE.TO) , opens new tab was a standout. Shares of the civil aviation training company climbed 11.9% after quarterly results beat estimates. The materials group was among the sectors that lost ground. It fell 1.3% as gold and copper prices declined, while consumer staples were down 0.7%. Loblaw Companies (L.TO) , opens new tab shares fell 2.4% after the retailer missed third-quarter revenue estimates, hurt by a slowdown in demand. Sign up here. https://www.reuters.com/markets/tsx-futures-edge-lower-ahead-us-inflation-data-2024-11-13/
2024-11-13 21:30
NEW YORK, Nov 13 (Reuters) - The private equity owner of Ridgemar Energy is exploring a sale of the U.S. oil and gas producer that could value the company at more than $1 billion, including debt, people familiar with the matter told Reuters on Wednesday. Ridgemar, which is backed by Carnelian Energy Capital, is working with investment bankers at RBC Capital Markets on a sale process for its operations in the Eagle Ford Basin of South Texas, the sources said, requesting anonymity as the discussions are confidential. Potential buyers include publicly listed and privately owned energy producers, the sources added, cautioning that a deal is not guaranteed. Carnelian, Ridgemar and RBC did not respond to requests for comment. Private equity firms have been active sellers of energy assets in recent years, as higher commodity prices have helped them exit oil and gas investments profitably. Earlier this year, energy-focused private equity firm EnCap Investments sold XCL Resources and Grayson Mill Energy to SM Energy (SM.N) , opens new tab and Devon Energy (DVN.N) , opens new tab respectively. In July, Point Energy Partners, which is backed by Vortus Investments, sold its assets to Vital Energy (VTLE.N) , opens new tab and Northern Oil and Gas (NOG.N) , opens new tab. Houston, Texas-based Ridgemar is one of the top remaining private oil producers in the Eagle Ford. In 2023, Ridgemar acquired the Eagle Ford assets of Callon Petroleum for $655 million in cash and $45 million in potential contingent payments. The company has since expanded its operations through smaller deals, adding about 17,000 net acres to boost its total holdings to more than 70,000 net acres in the western portion of the Eagle Ford, the sources said. Ridgemar expects in 2025 production to average around 27,000 barrels of oil equivalent per day, with core earnings of more than $450 million, the sources added. Sign up here. https://www.reuters.com/markets/deals/ridgemars-owner-explores-1-billion-plus-sale-us-oil-producer-sources-say-2024-11-13/
2024-11-13 21:02
LAGOS, Nov 13 (Reuters) - Nigeria's state oil firm, NNPC Ltd said on Wednesday one of its subsidiaries has agreed to supply 100 million standard cubic feet of gas per day to the Dangote oil refinery for the next 10 years. Financial details were not disclosed. Under the agreement, NNPC Gas Marketing Limited will supply the refinery built by Nigerian billionaire Aliko Dangote in Lagos with natural gas for power generation and feedstock. The contract has options for renewal and additional supply. NNPC, Africa's biggest oil producer, is seeking to promote domestic gas consumption for industrial growth. Sign up here. https://www.reuters.com/world/africa/nigerias-nnpc-signs-10-year-gas-sale-deal-with-dangote-refinery-2024-11-13/
2024-11-13 21:01
October CPI rises in line with forecast Rivian soars after Volkswagen increases investment Spirit plummets on report of bankruptcy preparation Indexes: Dow up 0.11%, S&P 500 up 0.02%, Nasdaq off 0.26% Nov 13 (Reuters) - The Dow and the S&P 500 ended slightly higher on Wednesday while the Nasdaq lost ground after October data showed consumer prices rising in line with expectations, adding support to bets that the U.S. Federal Reserve will cut interest rates in December. The consumer price index (CPI) rose 0.2% in October for the fourth straight month and advanced 2.6% on an annual basis, the Labor Department's Bureau of Labor Statistics said. Excluding the volatile food and energy components, the CPI increased 0.3% in October, meeting economists' forecasts. After the report, traders' bets reflected a more than 82% probability for a 25 basis-point interest rate cut at the Fed's December meeting, up from 58.7% on Monday, according to CME group's FedWatch tool , opens new tab. While some Fed officials sounded more cautious on Wednesday, Minneapolis Fed President Neel Kashkari told Bloomberg TV that he was confident inflation was headed down, noting that the CPI data "confirms" that downward path. "There's some relief inflation didn't come in ahead of expectations. That was a concern coming into today's CPI report," said Angelo Kourkafas, senior investment strategist at Edward Jones. "The fact we got a right-in-line number helped alleviate some of those fears. Nothing we saw today from today's data argues against a December rate cut." Outperformance in the consumer discretionary sector index (.SPLRCD) , opens new tab, up more than 1% on the day, was likely due to bets on rate cuts, according to Kourkafas. Still, Dallas Federal Reserve President Lorie Logan said the U.S. central bank should proceed cautiously on further interest rate cuts to keep from inadvertently re-igniting inflation. The Dow Jones Industrial Average (.DJI) , opens new tab rose 47.21 points, or 0.11%, to 43,958.19, the S&P 500 (.SPX) , opens new tab gained 1.39 points, or 0.02%, to 5,985.38 and the Nasdaq Composite (.IXIC) , opens new tab lost 50.66 points, or 0.26%, to 19,230.74. Also implying December rate cut bets, U.S. Treasury 2-year yields fell sharply after the inflation report. However, the benchmark 10-year yield regained ground after the data and rose as high as 4.46% as investors focused on longer-term expectations that President-elect Donald Trump's policies could exacerbate inflation. Still, investors are expecting a pro-business stance and possible tax cuts from the next administration. Wednesday's projections that the Republican Party had won a majority in the House of Representatives suggested that it could be easier for Trump to push through his policies, according to Sahak Manuelian, managing director and head of equity trading at Wedbush Securities. While Venu Krishna, head of U.S. equity strategy and global equity-linked strategies at Barclays, sees upside momentum for risk assets, he said the market is contending with rates, inflation and valuations that "are bigger headwinds now than they were in 2016, the last time Trump became president.” In individual shares, Spirit Airlines' (SAVE.N) , opens new tab shares plunged 59% on Wednesday after a report the U.S. carrier was preparing to file for bankruptcy protection, while the company said it was talking with creditors. Shares of Rivian (RIVN.O) , opens new tab soared 13.7% after Volkswagen (VOWG_p.DE) , opens new tab on Tuesday raised its investment in the EV maker. Declining issues outnumbered advancers by a 1.41-to-1 ratio on the NYSE where there were 371 new highs and 113 new lows. On the Nasdaq, 1,459 stocks rose and 2,839 fell as declining issues outnumbered advancers by a 1.95-to-1 ratio. The S&P 500 posted 58 new 52-week highs and 15 new lows while the Nasdaq Composite recorded 201 new highs and 165 new lows. On U.S. exchanges 16.49 billion shares changed hands compared with the 13.46 billion average for the last 20 sessions. Sign up here. https://www.reuters.com/markets/us/futures-slip-markets-await-inflation-data-clues-feds-rate-path-2024-11-13/
2024-11-13 20:59
BUENOS AIRES, Nov 12 (Reuters) - The cabinet chief to Argentine President Javier Milei cited oil major Shell (SHEL.L) , opens new tab as a potential investor in a future liquefied natural gas (LNG) project to be run by the country's state oil firm YPF (YPFDm.BA) , opens new tab, according to newspaper La Nacion. Cabinet Chief Guillermo Francos said at an event that the major energy company has shown "strong interest" in a potential LNG investment in the country, according to La Nacion. "We are always exploring opportunities to improve our portfolio," said Shell's spokesperson, Cynthia Babski, in an email to Reuters. The company declined to elaborate on its agreements or activities. The massive $55-billion LNG project led by YPF has already seen significant advances. The initial phase of the LNG development, originally planned as a tie-up between YPF and Malaysian state oil company Petronas, is expected to reach a final investment decision by the second half of next year, the CEO of the Argentine national producer said earlier this year. The final investment decision was originally expected for this year, but the partnership between Petronas and YPF has weakened amid disagreements over the project, YPF's Chief Executive Officer Horacio Marin has said. The capacity of the first phase would be about 9 million tons per year with first output to come between 2029 and 2030 entirely from floating facilities. A second phase involving onshore facilities would increase the project's total capacity to up to 30 million tons per year by 2032, according to YPF's most recent presentation. Argentina seeks to produce more natural gas from its huge Vaca Muerta shale formation in western Neuquen province, which would allow it to increase domestic supply and eventually export. Asked for comment on Shell's interest, a YPF source confirmed Francos' assessment. "The interest is real," the source told Reuters without specifying how Shell's investment in LNG in Argentina would be made. Earlier this month, YPF said it continues to seek agreements with oil companies to help build the LNG plant in Rio Negro. YPF posted a 7% increase in its natural gas production during the third quarter, attributed to progress in Vaca Muerta. Sign up here. https://www.reuters.com/business/energy/senior-aide-argentinas-milei-says-shell-eying-lng-investment-according-report-2024-11-13/
2024-11-13 20:27
US oil output to average 13.23 million bpd in 2024, 13.53 million bpd in 2025 - EIA World oil output to average 102.6 million bpd in 2024 - EIA World oil demand to grow by 1 million bpd this year - EIA OPEC+ output cuts to support oil prices through first quarter of 2025, EIA says NEW YORK, Nov 13 (Reuters) - Both U.S. and global oil production are set to rise to slightly larger record highs this year than prior forecasts, the U.S. Energy Information Administration said on Wednesday. A surge in oil supply has run into weakening demand growth this year, dragging oil prices to their lowest since 2021 despite large production cuts from the Organization of the Petroleum Exporting Countries and its allies in OPEC+. U.S. oil output is now expected to average 13.23 million barrels per day (bpd) this year, about 300,000 bpd higher than last year's record of 12.93 million bpd, the EIA said. The agency earlier forecast U.S. oil output to average 13.22 million bpd this year. U.S. oil production will grow to 13.53 million bpd next year, the EIA said in its November Short-Term Energy Outlook (STEO), a slight reduction from the 13.54 million-bpd forecast in its October STEO. The agency bumped up its global oil output forecast for 2024 to 102.6 million bpd, from its prior forecast of 102.5 million bpd. For next year, it expects world output of 104.7 million bpd, up from 104.5 million bpd previously. Oil demand growth has been a source of major disagreement between leading oil forecasters, due to differences on China's consumption and on the pace of the transition to alternative energy sources. EIA now expects global oil demand to grow by about 1 million bpd in 2024, up from its prior forecast of about 900,000 bpd. OPEC this week lowered its 2024 forecast for the fourth consecutive month, but still expects a much higher pace of 1.82 million bpd. Paris-based International Energy Agency expects growth of 860,000 bpd. OPEC+ production cuts should help lift global oil prices through the first quarter of next year, the EIA said. However, it warned that members of the group could be growing weary of the cuts, which have been in place for more than two years. "Although we assess that OPEC+ producers will likely continue to limit production below recently announced targets in 2025, the potential for weakening commitment among OPEC+ producers to continue cutting production adds downside risk to oil prices," the EIA said. Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman underscored the importance of continuing a "close coordination" within the OPEC+ group of oil producers during a phone call, the Kremlin said on Wednesday. Sign up here. https://www.reuters.com/markets/commodities/eia-slightly-raises-us-global-oil-production-forecasts-2024-11-13/
