OPEC+ agrees to stick to its existing policy of reducing oil production ahead of Russia sanctions

• The European Union is poised to ban all imports of Russian seaborne crude from Monday.
• The Kremlin has previously warned that any attempt to impose a price cap on Russian oil will cause more harm than good.
• Oil prices have fallen to below $90 a barrel from more than $120 in early June ahead of potentially disruptive sanctions on Russian oil

An influential alliance of oil producers on Sunday agreed to stay the course on output policy ahead of a pending ban from the European Union on Russian crude.

OPEC and non-OPEC producers, a group of 23 oil-producing nations known as OPEC+, decided to stick to its existing policy of reducing oil production by 2 million barrels per day, or about 2% of world demand, from November until the end of 2023.

Energy analysts had expected OPEC+ to consider fresh price-supporting production cuts ahead of a possible double blow to Russia’s oil revenues.

The European Union is poised to ban all imports of Russian seaborne crude from Monday, while the U.S. and other members of the G-7 will impose a price cap on the oil Russia sells to countries around the world.

The Kremlin has previously warned that any attempt to impose a price cap on Russian oil will cause more harm than good.

Oil prices have fallen to below $90 a barrel from more than $120 in early June ahead of potentially disruptive sanctions on Russian oil, weakening crude demand in China and mounting fears of a recession.

Led by Saudi Arabia and Russia, OPEC+ agreed in early October to reduce production by 2 million barrels per day from November. It came despite calls from the U.S. for the group to pump more to lower fuel prices and help the global economy.

Manufacturing orders from China down 40% in unrelenting demand collapse

• U.S. manufacturing orders in China are down 40% in what a logistics manager described to CNBC as an unrelenting demand collapse.
• Asia-based shipping firm HLS recently told clients it is a “very bad time for the shipping industry.”
• China to U.S. container volume was down 21% between August and November.
• Chinese factories are shutting down two weeks earlier than usual ahead of Chinese New Year.

https://www.cnbc.com/2022/12/04/manufacturing-orders-from-china-down-40percent-in-demand-collapse.html

OPEC+ to consider deeper oil output cuts ahead of Russia sanctions and proposed price cap

• OPEC+, a group of 23 oil-producing nations led by Saudi Arabia and Russia, will convene on Sunday to decide on the next phase of production policy.
• The highly anticipated meeting comes ahead of potentially disruptive sanctions on Russian oil, weakening crude demand in China and mounting fears of a recession.

https://www.cnbc.com/2022/12/02/opec-meeting-oil-output-cuts-on-the-table-ahead-of-russia-sanctions.html

Beijing, Shenzhen loosen more Covid curbs as China easing gathers pace

• Although daily cases hover near all-time highs, some cities are taking steps to loosen Covid-19 testing requirements and quarantine rules amid an economic slowdown and public frustration that has boiled over into unrest.
• Beijing residents cheered the removal of Covid-19 testing booths while Shenzhen followed other cities in announcing it would no longer require commuters to present their test results to travel.
• China began tweaking its approach last month, urging localities to become more targeted. Initial reactions, however, were marked with confusion and even tighter lockdowns as cities scrambled to keep a lid on rising cases.

https://www.cnbc.com/2022/12/03/beijing-shenzhen-loosen-more-covid-curbs-as-china-easing-gathers-pace.html

Economic Calendar: Dec 5 – Dec 9

Monday December 5

China, Japan and Euro zone services and composite PMI

(8:30 a.m. ET) Canadian building permits for October. Estimate is an increase of 5.0 per cent month-over-month.

(10 a.m. ET) U.S. factory orders for October. The Street is forecasting a month-over-month increase of 0.7 per cent.

(10 a.m. ET) U.S. ISM services PMI for November.

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Tuesday December 6

China foreign reserves and trade surplus

Japan household spending

Germany factory orders

(8:30 a.m. ET) Canada’s merchandise trade balance for October.

(8:30 a.m. ET) U.S. goods and services trade balance for October.

(10 a.m. ET) Canadian Ivey PMI for November.

Earnings include: AutoZone Inc.; Evertz Technologies Ltd.; Ferguson PLC

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Wednesday December 7

Euro zone GDP

Germany industrial production

(8:30 a.m. ET) U.S. productivity for Q3. The Street expects an annualized rate rise of 0.3 per cent with unit labour costs increasing 3.2 per cent.

(10 a.m. ET) Bank of Canada policy announcement.

(3 p.m. ET) U.S. consumer credit for October.

Earnings include: Brown Forman; Campbell Soup Co.; Descartes Systems Group Inc.; Dollarama Inc.; North West Co. Inc.; Snowflake Inc.

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Thursday December 8

Japan GDP, current account balance and bank lending

(8:30 a.m. ET) U.S. initial jobless claims for week of Dec. 3. Estimate is 230,000, up 5,000 from the previous week.

(12:30 p.m. ET) Bank of Canada Deputy Governor Sharon Kozicki delivers the Economic Progress Report in Montreal.

(10 a.m. ET) U.S. quarterly services survey for Q3.

Also: Quebec’s fiscal update

Earnings include: Broadcom Inc.; Chewy Inc.; Costco Wholesale Corp.; Lululemon Athletica Inc.

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Friday December 9

China CPI, PPI, aggregate yuan financing, new loans and money supply

(8:30 a.m. ET) Canadian capacity utilization for Q3.

(8:30 a.m. ET) U.S. PPI for November. Consensus is a increase of 0.2 per cent from October and up 7.2 per cent year-over-year.

(10 a.m. ET) U.S. wholesale trade for October.

(10 a.m. ET) U.S. University of Michigan Consumer Sentiment Index for December (preliminary reading).

Earnings include: Laurentian Bank of Canada

OPEC+ to consider deeper oil output cuts ahead of Russia sanctions and proposed price cap

• OPEC+, a group of 23 oil-producing nations led by Saudi Arabia and Russia, will convene on Sunday to decide on the next phase of production policy.
• The highly anticipated meeting comes ahead of potentially disruptive sanctions on Russian oil, weakening crude demand in China and mounting fears of a recession.
• RBC Capital Markets’ Helima Croft said there was no expectation of a production increase from the upcoming OPEC+ meeting and a “significant chance” of a deeper output cut.

https://www.cnbc.com/2022/12/02/opec-meeting-oil-output-cuts-on-the-table-ahead-of-russia-sanctions.html

Payrolls and wages blow past expectations, flying in the face of Fed rate hikes

• Nonfarm payrolls increased 263,000 for the month while the unemployment rate was 3.7%, the Labor Department reported Friday.
• The payrolls number was well above the 200,000 estimate, while the unemployment rate was in line.
• Average hourly earnings jumped 0.6% for the month, double the estimate, and 5.1% annually versus the 4.6% expectation.

https://www.cnbc.com/2022/12/02/jobs-report-november-2022.html

TOURMALINE DECLARES QUARTERLY DIVIDEND

Newswire.ca – Thu Dec 1, 4:00PM CSTPartnership Content

CALGARY, AB, Dec. 1, 2022 /CNW/ – Tourmaline Oil Corp. (TSX:TOU.TO) (“Tourmaline” or the “Company“) is pleased to announce that its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.25 per common share. The dividend will be payable on December 30, 2022 to shareholders of record at the close of business on December 15, 2022. This quarterly cash dividend is designated as an “eligible dividend” for Canadian income tax purposes.Read more at newswire.ca

Fin. Services Index ($FTTS) and Canadian Banks