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A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web

John Kemp from Reuters, along with Bloomberg’s Javier Blas, is at the top of my list of media sources on the global energy sector. Mr. Kemp’s recent feature column is even better than usual,

’[Brent oil] Futures prices have shifted from a big contango during the slump into an increasingly wide backwardation since the middle of 2017, which is consistent with a shift from over-supply to under-supply… Global oil consumption is predicted to increase by more than 1.5 million barrels per day (bpd) in 2018, the fourth consecutive year of very strong growth… But with steep declines in output from OPEC member Venezuela as a result of unrest and mismanagement, and continued curbs on production by other OPEC and non-OPEC members, global production is failing to keep pace with consumption… If OPEC members wait for an acceleration of upstream investment before relaxing their production curbs, as ministers have indicated, they will almost certainly over-tighten the market in the meantime.”

“Mission accomplished for OPEC as oil moves from slump to boom” – Kemp, Reuters

“Trudeau Under Fire for Funding Kinder Morgan Pipeline Opponents” – Bloomberg

“Foreign investors haven’t given up on Canada — just on our energy sector” – Financial Post

“@SBarlow_ROB Citi: Oil market tightness only temporary” – (research excerpt) Twitter

“Citi Says U.S. May Become World’s Top Oil Exporter Next Yea” – Bloomberg

“Oil Rises as Speculation on Iran Deal Counters Stockpile Gain” – Bloomberg

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U.S. earnings season has found markets very difficult to please with seemingly strong profit results leading to lower stock prices. The ten year U.S. Treasury yield is getting blamed for selling pressure in equities but I think the reaction to earnings news is more important,

“ “Everyone knew we would see good earnings, and that kept them from selling despite high pessimism,” Jason Browne, chief investment strategist at FundX Investment Group, wrote in an email. “Once the good earnings news is released, that catalyst is gone and so they sell the news.”… it’s possible that technical factors are still overshadowing fundamentals. “Lower highs have been the norm since the market peaked,” writes Bespoke Investment Group “

They could be wrong, but my strong suspicion is that big investors are smelling the end of the post-crisis bull market, and don’t want to be last to leave the party.

“Investors Are Looking for Any Hint of Trouble in Strong Earnings” – Bloomberg

“As Most Crowded Trades Turn Sour, Fund Managers Brace for Pain” – Bloomberg

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I don’t usually mention individual company news here, but Nintendo’s strong results are indicative of a seemingly unstoppable growth in video gaming,

“Nintendo Puts Switch Into Hands of Famicom-Generation President” – Bloomberg

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Tweet of the Day:

Diversion: “The Golden State Killer was the coldest of cases. Police have finally made an arrest.” – Vox

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Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 7:00pm EDT.

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