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Canada's Teck Resources said Sunday it had withdrawn its application to develop a giant oil sands mine in western Alberta, a controversial project which the federal government had been set to vote on this week. The Frontier project would have cost about Can$20 billion ($15 billion) and had been expected to produce 260,000 barrels of oil per day.
A Canadian mining company shelved a proposed multibillion-dollar energy project that the federal cabinet was days away from issuing a verdict on, citing political uncertainty about oil-and-gas development in the resource-rich country.
Canadian miner Teck Resources Ltd has withdrawn an application to build its C$20.6 billion ($15.7 billion) Frontier oil sands mine in Alberta, days before the federal government was to decide on whether to approve a project opposed by environmentalists and indigenous groups. Teck said on Sunday it would write down the C$1.13 billion ($852.12 million) carrying value of the project. The company released a letter by Teck Chief Executive Don Lindsay to Canada's environment minister, stating Teck was "disappointed to have arrived at this point".
Given that the virus was thought to be a sever short-term problem and expectations were for a quick recovery to what degree does the weekend news flow alter that view will be critical.
As Canadian Prime Minister Justin Trudeau considers whether to approve Teck Resources' Frontier oil sands project, roughly 20 others sit on the shelf as companies delay investment decisions hoping for new pipelines and higher prices. Trudeau's cabinet is expected to meet on Tuesday and decide on Frontier this week. Should Ottawa reject the project, Teck said on Friday it would write down Frontier by C$1.13 billion.
The short-term direction of the AUD/USD is likely to be determined by trader reaction to Friday’s high at .6639.
India, the world's second-biggest gold consumer, has discovered gold fields with reserves of over 3,000 tonnes in its most populous northern state, a government official said on Saturday. India mines between 2 to 3 tonnes of gold annually, relying on expensive imports to fulfil nearly all of its demand, which averaged 843 tonnes per year over the past 10 years. Its hunger for gold - used extensively in jewellery, as offerings to Gods and in lavish weddings - cost India more than $31 billion on imports last year, making the metal its second-biggest import item after crude oil.
Crude oil markets had a choppy week, testing support but then bouncing a bit before pulling back yet again. This is going to be a very noisy market going forward as all things China continue to be in the front of traders mind.
Natural gas markets had initially rally during the week but ran into a significant amount of resistance at the $2.00 level. At this point, it’s very likely that the market is going to continue to be very noisy.
Crude oil markets initially fell during the trading session on Friday but found enough support to turn around and make another attempt to rally.
The natural gas markets fell during the trading session on Friday, meaning testing the potential range that the market is trying to find.
Saudi Arabia and its Gulf Arab neighbors and large fellow OPEC producers the United Arab Emirates (UAE) and Kuwait are discussing deeper output cuts next week
The British pound has been pretty bullish during the week against the Japanese yen as we are attacking the ¥145 level. At this point, the market looks likely to break out, especially if we can get some type of “risk on rally.”
The Euro initially fell during most of the week but has recovered slightly as it looks like the gap is trying to hold from the weekly chart. That being said though, it’s difficult to imagine getting overly bullish at this point.
The Australian dollar had a rough week, breaking down below the recent lows, reaching towards the 0.66 handle. However, the market looks as if it is trying to finish the week with a little bit of a bounce, which should only offer more opportunities.
Gold prices surge as concerns over the spread of the coronavirus continued to buoy the yellow metal. Prices stormed higher rising by nearly 2% but is up more than 4% for the week. Gold implied volatility, which is represented by the GVZ index calculated by the Chicago Board of Options Exchange, surged more than 20% on Friday and is up 33% for the week hovering near the 16% level.
Commodity trading major Vitol said it expected oil prices to recover later this year once the effect of the coronavirus epidemic wanes
(Bloomberg) -- Teck Resources Ltd. dropped the most in three years after cutting its forecast for steelmaking coal as extreme weather and rail blockades disrupted output at a time when the coronavirus outbreak is threatening demand.The Vancouver-based company will temporarily reduce production and shut down its Neptune shipping terminal, it said Friday in its quarterly earnings report. The move will help address high levels of inventory and allow it to move forward with an upgrade at the Neptune facility.It’s been a tough period for Teck, as profit in 2019 was hurt by slumping coal prices and a C$910 million ($686 million) after-tax writedown on its stake in the Fort Hills oil-sands mine. Permitting delays and unrest in Chile will affect the cost of the company’s Quebrada Blanca Phase 2 project. A new schedule and updated capital estimate for that is planned for the first quarter.Teck dropped as much as 13% after the start of regular trading in Toronto, the most intraday since May 2016, and was down 11% as of 9:55 a.m. in Toronto.The miner is also waiting for approval from the Canadian federal government on its Frontier oil-sands project in Alberta. A negative decision could result in an additional impairment of about C$1.13 billion, Teck said. It expects a decision by the end of the month.Work to upgrade the Neptune Bulk Terminals will include a five-month shutdown from May to September, with completion of the work expected in the first quarter of 2021. If that’s delayed, “we may limit our production and sales temporarily on expiry of our contract with Westshore Terminals.” The miner has expressed frustration in its dealings with Westshore Terminals Investment Corp. and has been shifting steelmaking coal freight to its own facility as a result.“Given the potential for weaker demand in the short-term due to the effects of the coronavirus and the high inventory levels due to rail and port constraints, we are choosing to temporarily reduce production,” Teck said. “The extent and duration of impacts that the coronavirus may have on the demand and prices for our commodities, on our suppliers and employees, and on global financial markets is not known at this time, but could be material.”Key FiguresTeck forecast first-quarter steelmaking coal sales of 4.8 million to 5.2 million tons, compared with a Feb. 6 estimate of 5.1 million to 5.4 million tons.Full-year steelmaking-coal production is seen at 23 million to 25 million tons, down from 25.7 million last year.The company reported fourth-quarter adjusted earnings per share of 22 cents, missing the lowest analyst estimate compiled by Bloomberg.To contact the reporters on this story: Liezel Hill in Johannesburg at firstname.lastname@example.org;Danielle Bochove in Toronto at email@example.comTo contact the editors responsible for this story: Luzi Ann Javier at firstname.lastname@example.org, Steven FrankFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Oil prices slipped 1.5% on Friday, as fears over the spread of the coronavirus outside of China mounted and economic data began to show the extent of the epidemic’s impact.