Glacier FarmMedia Response to COVID-19

Global Markets: Pension fund pulling out of oil sands

By MarketsFarm

WINNIPEG, Oct. 8 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– Norway’s largest pension fund removed four Canadian oil companies from its investment list on Tuesday. The fund’s chief executive officer stated it will no longer invest in companies that derive more than five per cent of their revenue from the oilsands. The companies are Cenovus Energy Inc., Suncor Energy Inc, Imperial Oil Ltd., and Husky Energy Inc. The US$81 billion pension fund sold off its US$58 million worth of stocks as it wants to align itself with the two-degree Celsius global warming target under the Paris climate agreement.

– The price of Western Canadian Select (WCS) crude oil has fallen in anticipation that the Province of Alberta will ease production limits in exchange for increased rail shipments of oil. The price differential between WCS and the benchmark West Texas Intermediate (WTI) crude oil grew by US$1.30 on Monday to US$15.75 per barrel. One economist told Bloomberg News that for WCS to remain competitive with WTI, the price differential would have to increase to US$20.00 per barrel, makes Canadian oil less profitable.

– Only a few days ahead of United States/China trade talks resuming, the U.S. fired a warning shot across China’s bow. After the closing of trading on Monday, the Trump administration added eight Chinese companies, primarily technology firms, to a blacklist that effectively prohibits them from doing business in the U.S. without a special license. The impetus for the move was said to be China’s treatment of Muslim ethnic minorities. However, a spokesperson for the U.S. Department of Commerce said the ban wasn’t related to upcoming trade negotiations.

COPA Medallion COPA finalist in 2012, 2014 and 2015.
©2020 AGCanada is a production of Glacier FarmMedia Limited Partnership. Any affiliated or third party content is the property of its respective owner and is used with permission.
Please refer to Copyright Page for details.
Click here to view our Website Terms of Use.