CALGARY, Alberta — Spot crude-by-rail volumes are down in Canada as traders and marketers including Glencore PLC are deterred by stronger heavy oil prices that have erased arbitrage opportunities to ship cheap crude from landlocked Alberta to higher-priced U.S. markets, industry sources said.
Since early August, heavy Canadian crude’s discount to U.S. futures has narrowed to about half of what it was last year, barely covering rail shipping costs, mainly due to extra demand to fill Enbridge Inc’s new pipeline to flow the Canadian glut to U.S. Gulf Coast refining hub.
While the public's attention has been focused recently on revelations involving currency manipulation by all the same banks best known until recently for dispensing Bollinger when they got a Libor end of day print from their criminal cartel precisely where they wanted it (for an amusing take, read Matt Taibbi's latest), the truth is that manipulation of FX and Libor is old news.
ETF Database submits: A day after the Fed’s $600 billion dollar injection into the Treasury markets, U.S. equity markets stormed higher across the board. The tech-heavy Nasdaq finished ahead by 1.4% while the S&P 500 and the Dow both gained almost 2% on the day. In the Treasury markets, medium-term yields took a beating as the 10-year note fell 10 basis points to yield 2.48% and the 7-year note saw its yield sink by 11 basis points to the 1.71% mark.
Oil prices rose to a six-month high on Tuesday as Western powers readied a military strike against Syria, and traders and analysts cited concerns over stability in the Middle East.
Below are facts about Syria’s energy sector and why developments there matter to global oil markets:
Syria has not exported any oil since late 2011, when international sanctions came into force.
Real estate investment trusts led by Choice Properties REIT are helping initial public offerings outpace Canada’s benchmark index for the first time in four years on speculation dividend payers will hold up better than commodity shares as global economic growth slows.
James Cordier submits:When I first started my career back in Milwaukee (more years ago than I care to remember), most of my initial clients were farmers. In those days, it wasn’t like it is today. Back then, there were two types of people that invested in commodities – farmers and gamblers.
Cliff Wachtel submits: It isn’t often that we see one distinct event that forces a reevaluation of ongoing trends, but the FOMC statement this past Tuesday could prove to be one of them. By issuing a statement that markets interpreted to be a clear indication of a new round of stimulus in the coming months, the Fed has altered the picture in every major asset market for the near term at minimum.