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https://www.cnbc.com/2023/05/30/debt-ceiling-deal-updates.html
Leading crude exporter Saudi Arabia is maximizing refining profits by importing unprecedented amounts of cheap Russian diesel and in turn shipping record volumes to Singapore, where the fuel can achieve higher margins, shiptracking data shows.
Russia has had to divert the volumes it sold to Europe, previously its dominant product market, after the European Union banned oil product imports in February as part of its response to Moscow’s invasion of Ukraine.
That allowed state oil giant Saudi Aramco to increase its May imports to Singapore to record levels and cash in on better arbitrage netbacks in the east than Europe, driven by tighter Asian supply during the maintenance season, traders and analysts said.
“Diesel supply in Singapore is relatively tight due to regional refinery maintenance, while Middle East supplies are rising, which may create spot arbitrage opportunities for traders to move the cargoes (to Singapore),” Vortexa’s head of APAC analysis Serena Huang said.
Saudi Arabia will import up to 500,000 tonnes (3.7 million barrels) or more of Russian diesel in May, with most of it arriving at Ras Tanura, where one of Saudi Aramco’s refineries is located, two trading sources, Kpler and Refinitiv showed.
At the same time, diesel from Saudi Arabia arriving in Singapore is set to hit 400,000 tonnes – an unprecedented level, data from Refinitiv, Vortexa and two industry sources found. The sources asked for anonymity because they were not authorized to speak to the media.
The rise in Saudi supplies could replenish Singapore stocks as exports from northeast Asia fall during the refinery overhaul season between May and July, the sources added.
It is however unclear whether Saudi Arabia was storing some of its own production and shipping mostly Russian supplies via swap trades instead, since both are of typical diesel specifications.
Russian 10 ppm sulphur gasoil cargoes are traded at discounts of around $30 a barrel to free-on-board Middle East quotes, versus Asia’s spot premiums for the same grade at 16 cents a barrel to Singapore quotes, according to trade sources and Refinitiv data.
Globally, Saudi’s diesel exports in April hit an all-time high of around 3.7 million tonnes, Kpler data showed. Jizan refinery, solely owned by Aramco, had been expected to increase diesel exports when crude runs stabilize.
Aramco declined to comment.
FGE analyst Lu Yawen said more Middle East gasoil cargoes were heading east rather than west to Europe, where high inventories and weak economic growth have depressed prices.
Falling freight costs also aided the arbitrage flow, two other oil and shipping analysts said.
The cost to charter a Long Range (LR) vessel on the Middle East to Singapore route has dropped to slightly below $25 a tonne from around $34 a tonne in the last two months, they added. That is half the cost for the same ship to travel to Europe, they said.
Global diesel supplies have increased since the start of 2023, with China and the Middle East ramping up exports and as mild winter in Europe capped demand, helping to reduce prices.
Asia’s 10 ppm sulphur gasoil spot premiums and refining margins have fallen by more than $8 and $1.50 a barrel, respectively, in the last two months, Refinitiv Eikon data showed.
Additions to refinery capacity of 700,000 barrels a day expected this year will further pressure east-of-Suez gasoil margins, Energy Aspects said in a note. The capacity includes units that are ramping up and will come online later this year.
Monday May 29
U.S. and U.K. markets closed
Also: Alberta election
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Tuesday May 30
Japan jobless rate
(8:30 a.m. ET) Canada’s current account balance for Q1.
(9 a.m. ET) U.S. S&P Corelogic Case-Shiller Home Price Index (20 city) for March. The Street is expects a flat result month-over-month and down 1.7 per cent year-over-year.
(9 a.m. ET) U.S. FHFA Home Price Index for March. Consensus is a rise of 0.2 per cent from February and up 2.9 per cent year-over-year.
(10 a.m. ET) U.S. Conference Board Consumer Confidence Index for May.
(10:30 a.m. ET) U.S. Dallas Fed Manufacturing Activity for May.
Earnings include: Canopy Growth Corp.; Hewlett Packard Enterprise Co.; HP Inc.
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Wednesday May 31
China manufacturing and services PMI
Japan retail sales and industrial production
Germany CPI and unemployment
(8:30 a.m. ET) Canada’s real GDP for Q1. The Street is projecting an annualized rate rise of 2.5 per cent.
(8:30 a.m. ET) Canada’s monthly real GDP for March. Consensus is a decline of 0.1 per cent.
(9:45 a.m. ET) U.S. Chicago PMI for May.
(10 a.m. ET) U.S. Job Openings and Labor Turnover Survey for April.
(2 p.m. ET) U.S. Beige Book released.
Earnings include: CAE Inc.; Champion Iron Ltd.; Descartes Systems Group Inc.; National Bank of Canada; Patriot Battery Metals Inc.; Salesforce Inc.
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Thursday June 1
Japan capital spending
Euro zone CPI and jobless rate
Germany retail sales
(8:15 a.m. ET) U.S. ADP National Employment Report for May. Estimate is a rise of 165,000 from May.
(8:30 a.m. ET) U.S. initial jobless claims for week of May 27. Estimate is 235,000, up 6,000 from the previous week.
(8:30 a.m. ET) U.S. productivity for Q1. Consensus is an annualized rate decline of 2.6 per cent with unit labour costs rising 6.2 per cent.
(9:30 a.m. ET) Canada’s S&P global manufacturing PMI for May.
(9:45 a.m. ET) U.S. S&P global manufacturing PMI for May.
(10 a.m. ET) U.S. ISM manufacturing PMI for May.
(10 a.m. ET) U.S. construction spending for April.
Also: Canadian and U.S. auto sales for May.
Earnings include: Broadcom Inc.; BRP Inc.; C3 AI Inc.; Dollar General Corp.; Lululemon Athletica Inc.; VMware Inc.
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Friday June 2
(8:30 a.m. ET) U.S. nonfarm payrolls for May. The Street expects an increase of 195,000 from April with the unemployment rate rising 0.1 per cent to 3.5 per cent and average hourly earnings up 0.3 per cent.
Earnings include: E3 Lithium Ltd.; Skeena Resources Ltd.
An agreement in principle has been reached on the debt ceiling, Fox News has learned.
According to multiple sources, an all GOP House conference call is scheduled to happen at 9:30 p.m. Saturday about the debt limit negotiations. President Biden and House Speaker Kevin McCarthy were scheduled to speak by phone Saturday night at 6 p.m. to discuss a potential debt limit deal, Fox News learned.
The meeting ended the call regarding the debt ceiling at 7:38 p.m., and the call lasted for nearly 90 minutes.
After the meeting where a deal on a debt limit increase was announced, McCarthy announced some details of the agreement.
Debt ceiling agreement in principle reached between Democrats, Republicans | Fox News
Crude oil prices climbed higher on Friday after Russia played down the prospect of additional output cuts by OPEC+.
Russian Deputy Prime Minister Alexander Novak said on Thursday that he doesn’t think there will be new steps with regard to production cuts.
Oil was also supported by reports that U.S. lawmakers are closing in on a deal that would raise the government’s $31.4 trillion debt ceiling for two years while capping spending on most items.
West Texas Intermediate crude oil futures for July ended higher by $0.84 or about 1.2% at $72.67 a barrel. WTI crude futures gained about 1.6% in the week, after surging 2.2% last week.
Brent crude futures settled at $76.95 a barrel, gaining $0.69 or about 0.9%. Brent futures gained 1.8% in the week.
According to the data released by Baker Hughes, total active drilling rigs in the U.S. fell by another 9 to 711, the lowest count in a year.
Drilling rigs targeting crude oil in the U.S. fell by 5 to 570, its lowest number since last May, and gas rigs dropped by 4 to 137, the lowest since March last year. Total rigs targeting crude oil in the Permian Basin gained 1 to 347.
“The upcoming week could deliver a make-or-break moment for oil as we will see if Chinese manufacturing is rebounding, if the US labor market is reading to soften, how oil giants Exxon and Chevron address climate ambitions at their AGMs, and what if the Saudis and Russians can reach agreement on what to drive OPEC+ do with output,” says Edward Moya, Senior Market Analyst at OANDA.
ORONTO, May 23, 2023 /CNW/ – (TSX: WN) – George Weston Limited (“Weston”) announced today that the Toronto Stock Exchange (“TSX”) has accepted a notice filed by Weston of its intention to make a normal course issuer bid (“NCIB”).
The TSX notice provides that Weston may, during the 12-month period commencing May 25, 2023 and terminating May 24, 2024, purchase up to 6,954,013 Weston common shares (“Common Shares”), representing approximately 5% of the 139,080,273 Common Shares issued and outstanding as of May 11, 2023, by way of a NCIB on the TSX or through alternative trading systems or by such other means as may be permitted under applicable law. Based on the average daily trading volume of 151,757 during the last six months, daily purchases will be limited to 37,939 Common Shares, other than block purchase exceptions.
Purchases of Common Shares will be made in open market transactions on the TSX, through alternative trading systems, or by such other means as may be permitted by applicable law, including private agreement purchases. In addition, Weston may enter into forward purchase or swap contracts in connection with Common Shares which may be settled by physical settlement, cash settlement or a combination thereof. The forward price will be based on market price, dividend yield and market interest rates.
Decisions regarding the timing of future purchases of Common Shares will be based on market conditions, share price and other factors. Weston may elect to suspend or discontinue its NCIB at any time. Common Shares purchased under the NCIB will be cancelled or transferred to and held by trusts established by Weston for the settlement of equity settled incentive plans. Weston believes that the market price of Common Shares could be such that their purchase may be an attractive and appropriate use of corporate funds. Weston may also use its NCIB to acquire the number of Common Shares that are issued pursuant to the exercise of options in order to offset the dilutive effect of options that have been exercised. Pursuant to its previous NCIB, under which Weston received approval from the TSX to purchase up to 7,304,927 Common Shares for the period of May 25, 2022 to May 24, 2023, 6,645,013 Common Shares have been purchased as of May 11, 2023, at a weighted average price of $158.74.
From time to time, when Weston does not possess material non-public information about itself or its securities, it may enter into a pre-defined plan with its broker to allow for the purchase of Common Shares at times when Weston ordinarily would not be active in the market due to its own internal trading blackout periods and insider trading rules. Any such plans entered into with Weston’s broker will be adopted in accordance with the requirements of applicable Canadian securities laws.
About George Weston Limited
George Weston Limited is a Canadian public company founded in 1882. The Company operates through its two reportable operating segments, Loblaw Companies Limited and Choice Properties Real Estate Investment Trust. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services and wireless mobile products and services. Choice Properties owns, manages and develops a high-quality portfolio of commercial and residential properties across Canada.
SOURCE George Weston Limited
The Canadian market ended on a firm note on Friday, aided by strong gains in technology, consumer discretionary and financials sectors.
The mood in the market remained fairly positive amid signs of progress in U.S. debt ceiling deal negotiations.
The benchmark S&P/TSX Composite Index ended with a gain of 146.23 points or 0.74% at 19,920.31. The index scaled a low of 19,832.78 and a high of 19,944.09 intraday. The index shed 2.1% in the week.
The Capped Information Technology surged nearly 2%. Celestica Inc (CLS.TO) soared 10.3%. Hut 8 Mining Corp (HUT.TO) rallied nearly 6%. Coveo Solutions (CVO.TO), Converge Technology Solutions (CTS.TO), Bitfarms (BITF.TO), Kinaxis (KXS.TO), Open Text Corporation (OTEX.TO), Constellation Software (CSU.TO), Enghouse Systems (ENGH.TO), Quarterhill (QTRH.TO) and Docebo Inc (DCBO.TO) gained 1.5 to 4.3%.
Consumer discretionary stocks Spin Mater Corp (TOY.TO), Dollarama Inc (DOL.TO), Gildan Activewear (GIL.TO) and Magna International (MG.TO) advanced 1.5 to 2%.
Among financials, Fairfax Financial Holdings (FFH.TO) climbed more than 3%. Bank of Montreal (BMO.TO), Nuvei Corp (NVEI.TO), Manulife Financial (MFC.TO), goeasy (GSY.TO), Canadian Imperial Bank of Commerce (CM.TO) and Royal Bank of Canada (RY.TO) ended higher by 1.3 to 1.6%.
Healthcare stock Tilray Inc (TLRY.TO) tanked 20.5% after the company said it would be offering a 5.2% convertible senior note offering due in 2027 and announced pricing of $150 million of that.
On the economic front, preliminary data from Statistics Canada showed wholesale sales in Canada increased 1.6% month-over-month in April 2023, after a 0.1% drop in March.
SECOND QUARTER FINANCIAL HIGHLIGHTS, compared with the second quarter last year:
YEAR-TO-DATE FINANCIAL HIGHLIGHTS, six months ended April 30, 2023, compared with the corresponding period last year:
