Daily Wrap-up: Oil up 4.5 per cent on OPEC deal

Daily Wrap-up: Oil up 4.5 per cent on OPEC deal

Daily Wrap-up: Oil up 4.5 per cent on OPEC deal Oil up 4.5 per cent on OPEC deal
Oil prices surged Wednesday on reports from Algeria that OPEC members had reached a deal to cap output.

As the session began, there was concern that old rivals Saudi Arabia and Iran would stymie the deal but it appears that there will be a reduction from the current 33.24 million barrels per day to 32.5 million bpd.

The deal will not be in place before the output of each individual member is agreed and that won’t happen until the next formal OPEC meeting in November.
The main TSX index closed more than 1 per cent higher with the energy sector gaining more than 5 per cent and all but utilities and consumer staples ending in positive territory.

Wall Street also gained along with Europe while Asian markets were mixed.
The S&P/TSX Composite Index closed up 173.4 (1.19 per cent)
The Dow Jones closed up 110.9 (0.61 per cent)
Oil is trending higher (Brent $48.34, WTI $46.70 at 4.05pm)
Gold is trending lower (1326.00 at 4.05pm)
The loonie is valued at U$0.7623
56 per cent of Canadians just $200 from debt crisis
An extra $200 per month would be enough to push 56 per cent of Canadians into a debt crisis, unable to pay their bills.

That’s the finding of a survey by insolvency firm MNP Debt which asked more than 1,500 Canadians about their finances. The figure is up 8 percentage points in 6 months.

The firm also found that 31 per cent of respondents are already late will bill payments and those that are now concerned about their debts has risen to 52 per cent, up 9 percentage points in 6 months.
Blackberry to stop making smartphones
Blackberry’s smartphone production is to end but that doesn’t mean the end of the firm’s devices. The Ontario firm released its latest financial results Wednesday and revealed that production of devices will be outsourced in future.

It announced its first deal, with a manufacturer in Indonesia, which will see Blackberry’s software in devices made by the third party for the local market. As CEO John Chen put it, the firm is about putting the “smart in the phone.”

Blackberry’s results showed a net loss of U$372 million with a restructuring charge of $147 million. That compares to a net profit a year ago of $51 million. Revenue dropped 31.8 per cent year-over-year to $334 million.