Everything You Need to Know on Friday: Oil Prices Decline as Anticipated OPEC+ Supply Increases Offset China's Stimulus Efforts

● S&P/TSX 60 Index Standard Futures are trading at 1,445.60, up 0.04% from previous close

● Canada's GDP for July Grows More Than Expected; August Advance Estimate Flat

● Oil Prices Decline as Anticipated OPEC+ Supply Increases Offset China's Stimulus Efforts

● Fission Uranium and Paladin Energy Await Court Ruling Following the Conclusion of Hearings on Their Proposed Merger

● Defense Metals and the Saskatchewan Research Council Have Signed an MOU to Strengthen the Domestic Rare Earth Element Supply Chain

Canada's real GDP rose by 0.2% month-over-month in July, following minimal change in June, according to Statistics Canada. This growth exceeded the 0.1% consensus forecast from MUFG. However, advance estimates suggest that real GDP was flat in August, as increases in oil and natural gas extraction and the public sector were offset by declines in manufacturing and transportation.

Despite challenges from wildfires affecting transportation and accommodation services, the services sector grew by 0.2% in July, largely driven by retail trade, public sector activity, and finance and insurance. Goods-producing industries saw a slight increase of 0.1%, with utilities and manufacturing leading the growth. Overall, 13 of 20 sectors expanded in July, while the construction sector contracted by 0.4% for the second consecutive month, marking it as the largest detractor from growth. GDP measures the value of goods and services produced in Canada, available for consumption, investment, or export.

Oil prices dipped early Friday despite new stimulus measures from China aimed at reviving its struggling economy. West Texas Intermediate crude for November delivery fell by $0.04 to $67.63 per barrel, while November Brent crude decreased by $0.14 to $71.46.

China's central bank cut interest rates to address weak consumer demand and a debt crisis in its real estate sector, adding to earlier stimulus efforts. However, the potential increase in supply from OPEC+ is overshadowing any positive demand outlook. Reports indicate that Saudi Arabia plans to unwind 2.2 million barrels per day of production cuts by adding 180,000 barrels per day starting in December.

Ole Hansen, head of commodity strategy at Saxo Bank, noted that the market's focus has shifted from improved demand to the prospect of additional supply at an inopportune time. Meanwhile, Hurricane Helene has temporarily disrupted Gulf of Mexico production, with 25% of output shut in, providing some short-term support for prices.