Everything You Need to Know on Tuesday: Crude Oil Prices Surge Amid Escalating Geopolitical Tensions, Supply Concerns
Good morning mooers! Here are things you need to know about today's market:
● S&P/TSX 60 Index Standard Futures are trading at 1,308.30, down 0.17%
● Crude oil prices surge amid escalating geopolitical tensions, supply concerns
● BCE warns shareholders of TRC capital's below-market unsolicited mini-tender offer
● Bitfarms reports significant mining fleet expansion and efficiency gains
● Restaurant Brands international expands in China with Popeyes acquisition and investment in TH international
Market Snapshot
Today, the Canadian dollar is trading at 72.89 cents US, a slight increase from Monday.
S&P/TSX 60 Index Standard Futures are trading at 1,308.30, down 0.17% from previous close.
Commodities
Crude Oil Prices Surge Amid Escalating Geopolitical Tensions, Supply Concerns
According to a recent report by ANZ Bank on Tuesday, Brent crude, the international oil price standard, has seen prices climb above $86 per barrel, driven by burgeoning supply constraints.
The price of Brent crude edged higher by 0.5%, reaching $87.03 per barrel, while its counterpart, West Texas Intermediate crude, also saw a 0.5% increase to $83.80 per barrel in early Tuesday trading. The bank highlighted that market prices are incorporating a premium for geopolitical risks, as tensions in the Middle East intensify.
The situation has been exacerbated by a drone strike attributed to Hezbollah, raising alarms over the potential for Iran to become more deeply embroiled in the regional strife. Concurrently, in the United States, the approaching Hurricane Beryl is anticipated to impinge on offshore oil extraction and processing activities.
Export figures from Saudi Arabia dropped to 5.61 million barrels per day in June due to waning demand. Nevertheless, production levels from the Organization of the Petroleum Exporting Countries (OPEC) and its partners remained stable at around 27 million barrels per day for the month. The group continues to focus on oil market stabilization efforts, which has lent additional support to the oil prices, as per ANZ Bank's analysis.
On the demand side, the American Automobile Association expects an upsurge in car travel, with an additional 2.8 million people predicted to hit the road for the July 4th holiday. This projection may contribute to a rebound in oil demand following a relatively lackluster first half of the year, according to the bank's assessment.
Stocks to watch
BCE Inc. Warns Shareholders of TRC Capital's Below-Market Unsolicited Mini-Tender Offer
During the holiday weekend, $BCE Inc (BCE.CA)$ announced it received an unexpected mini-tender offer from TRC Capital Investment Corporation for the purchase of up to 2.5 million of its common shares. This figure represents roughly 0.3% of BCE's total outstanding shares, offered at the sub-market rate of C$43.40 each. BCE has firmly stated it does not support the mini-tender offer, is not affiliated with TRC Capital or the offer, and advises shareholders to reject this bid. The company has alerted its shareholders that the offer price is less than the current market value of its shares. Specifically, TRC Capital's bid is about 4.43% and 4.44% lower than the BCE common share closing prices on the Toronto Stock Exchange and the New York Stock Exchange, respectively, as of June 24, 2024, which was the last session before the offer was made.
Bitfarms Reports Significant Mining Fleet Expansion and Efficiency Gains
$Bitfarms Ltd (BITF.CA)$ has released its monthly production report alongside updates on enhancements and growth of its mining infrastructure. "Our efforts in updating our mining equipment and constructing new facilities are advancing well, with the installation of over 39,000 new mining rigs and the removal of the same number of outdated units within this year. By month's end, our capacity reached 11.4 EH/s with 10.4 EH/s being actively used, and our energy efficiency improved to 25 w/TH," stated Ben Gagnon, the Chief Mining Officer. "With the completion of upgrades across our Quebec locations, we've significantly increased our computational power and energy efficiency, which has positively impacted our gross mining margins portfolio-wide."
BITF also noted developments in Paraguay, where its Paso Pe facility has been partially activated, with four out of five warehouses and six out of eight hydro containers in full operation, contributing 2.5 EH/s. The activation of the remaining 0.6 EH/s is scheduled for July. The company acknowledged that extreme weather in June slightly delayed logistics and operations, resulting in a temporary dip in mining performance.
Key takeaways from the report include BITF's mining of 189 BTC in June 2024; a rise in the installed computational power to 11.4 EH/s, with 10.4 EH/s in active operation; and an enhancement in energy efficiency to 25 w/TH, which is a 36% year-over-year increase and a 7.4% month-over-month improvement. Moreover, BITF disclosed plans for a strategic expansion into the U.S. with a 120 MW site optimal for high-performance computing and artificial intelligence. The company's power capacity goal for 2025 is set to more than double from the current 310 MW to 648 MW. BITF remains confident in achieving a projected 21 EH/s and 21 w/TH by 2024 and commenced its 2025 outlook aiming for over 35 EH/s.
Restaurant Brands International Expands in China with Popeyes Acquisition and Investment in TH International
$Restaurant Brands International Inc (QSR.CA)$ revealed its strategic expansion in China through two key deals: acquiring Popeyes China and co-investing with Cartesian Capital in $TH international (THCH.US)$. The company's announcement highlights these moves as a testament to RBI's belief in the potential of the Chinese QSR market—one of the world's most expansive—and its dedication to fostering growth there. RBI plans to invest up to $45 million across both ventures.
Specifically, RBI will take over the Popeyes China operation from Tims China, with a transaction based on an enterprise value of $15 million, conducted on a cash-free, debt-free basis. This acquisition will put RBI at the helm of Popeyes China's business, which launched its inaugural restaurant in August 2023 and currently runs 14 restaurants in Shanghai. QSR anticipates an acceleration in the number of restaurant openings, driven by investments in local teams and restaurant development. RBI's long-term vision includes partnering with local entities to establish a master franchise model in line with Popeyes' traditional international market approach.
Source: MT Newswires
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