AMERICAS OIL: Impact of Potential US Tariffs on Canadian Oil Uncertain: CRS
Jan-22 13:31
Impact of Potential US Tariffs on Canadian Oil Uncertain: CRS
- The US Congressional Research Service released a white paper examining the potential impact of a 25% tariff on Canadian oil exports to the US.
- While tariffs increase the cost of the acquired goods, some refineries could be motivated to secure crude oil not subject to higher tariffs.
- This optionality makes it difficult to assess the impact on US petroleum and refined product prices. Exactly how will be determined by the response of refineries, Canadian crude oil producers, and the Government of Alberta.
- Tariffs could be reflected in refining profits, Canadian crude oil prices, and US product prices.
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MNI: CANADA NOV INDUSTRIAL PRICES +0.6% MOM; EX-ENERGY +0.5%
Dec-23 13:30
- MNI: CANADA NOV INDUSTRIAL PRICES +0.6% MOM; EX-ENERGY +0.5%
- CANADA NOV RAW MATERIALS PRICES -0.5% MOM; EX-ENERGY +0.6%
MNI:US NOV DURABLE NEW ORDERS -1.1%; EX-TRANSPORTATION -0.1%
Dec-23 13:30
- MNI:US NOV DURABLE NEW ORDERS -1.1%; EX-TRANSPORTATION -0.1%
- US OCT DURABLE GDS NEW ORDERS REV TO +0.8%
- US NOV NONDEF CAP GDS ORDERS EX-AIR +0.7% V OCT -0.1%
US TSYS: JPM Recommend Longs 2s
Dec-23 13:11
Late on Friday J.P.Morgan recommended adding longs in 2s.
- They reasoned that “despite the hawkish Fed outcome, it’s clear the reaction function skews dovishly, as the two choices in front of the central bank are either to continue to lower rates, albeit at a slower pace, or hold”
- “Accordingly, we think markets will continue to price in easing, and this should act as an anchor for the front end. Against this backdrop, valuations appear attractive: front-end yields have retraced to their highest levels since midyear and are pricing in a minimal amount of easing over the next 1- to 2 years”
