Everything You Need to Know on Wednesday: Oil Prices Jump Again as Iran's Attack on Israel Heightens Prospect for Wider Middle East War

Good morning mooers! Here are things you need to know about today's market:

●S&P/TSX 60 Index Standard Futures are trading at 1,445.30, up 0.07% from previous close

● Oil prices jump again as Iran's attack on Israel heightens prospect for wider Middle East war

● BCE price target lowered to $50 at TD

● Blue Moon Metals sells Yava project in Nunavut; Shares jumped 11% on Tuesday

● Sun Life appointing Maya Beri as CIO

Today, the Canadian dollar is trading at 74.2 US cents, a slight increase from the previous close.

Oil prices surged for the second day on Wednesday due to escalating concerns about a potential Middle Eastern conflict threatening Persian Gulf supplies.

West Texas Intermediate crude for November delivery rose US$2.14 to US$71.97 per barrel, the highest since August 30, while December Brent crude increased US$2.04 to US$75.60.

This increase followed Iran's launch of approximately 180 missiles at Israel in retaliation for the killing of Hezbollah leader Hassan Nasrallah. Although there were no reported injuries in Israel and most missiles were intercepted, both Israel and the U.S. have threatened retaliation, potentially endangering Iran's oil infrastructure and its 1.7 million barrels per day in exports.

Saxo Bank noted that while previous geopolitical tensions have often deflated quickly, the current situation poses a significant supply risk due to the possibility of an Israeli counterattack on Iran's nuclear and energy facilities.

These tensions have provided support to a market already struggling with weak demand from China, the expected return of around 500,000 barrels per day from Libya, and OPEC+ plans to ease 2.2 million barrels per day of production cuts in December.

Additionally, a smaller-than-expected decline in U.S. oil inventories last week has impacted market fundamentals, with the American Petroleum Institute reporting a drop of 1.5 million barrels, less than the anticipated 2.1 million barrel decrease. Official data from the Energy Information Administration is expected later today.

"As indicated by the CEO at a conference in September, BCE is facing revenue growth challenges in Q3," Valentini said in a note to clients.

"We lowered our estimates and we now expect FY24 revenue guidance of 0-4% to be slightly missed," the analyst said.

BCE reports Q3 results on November 7.

According to the agreement, Blue Moon will receive 4,250,000 common shares of Honey Badger, which have an implied value of approximately $340,000, equating to 6.5% of Honey Badger's total issued and outstanding shares.

"The Yava project is considered non-core for our company, so we are pleased to monetize this asset and refocus our efforts on advancing the Blue Moon deposit in the U.S.," stated Blue Moon CEO Patrick McGrath. "We are currently assessing our next steps, including the initiation of a preliminary economic assessment."

Following the announcement, Blue Moon's share price surged by 11% to reach nearly a 52-week high of $0.30 on the TSXV.