Canadian Rail Workers Prepare to Strike
August 19, 2024
The energy markets are lower here in early trading to start off a new week. The news stories are the same it just depends on what is currently on the mind of traders and this morning it is the poor economic outlook for China, as well as the on again off again recession talk here in the US. Offering a floor under any sell off is the ongoing uncertainty in the Middle East. Antony Blinken, US Secretary of State, said the ceasefire talks have arrived at a decisive moment for Gaza, and we have probably the best and maybe last opportunity to get an agreement. Traders will be watching to see how this situation goes moving forward.
Baker Hughes reported that oil rigs were down 2 to a total of 483 oil rigs and last year there were 520 oil rigs. The EIA lowered their forecast for domestic oil production by 120,000 bpd to 170,000 bpd.
Negotiation between Canadian National and Teamsters union has seen no progress. Union workers are prepared to strike, and CN has already issued notice it would start locking out union workers on Thursday. This will most likely not immediately impact oil imports into the US from Canada but if it drags on, it could.