Enbridge turns on line 3 as Trump launches a new trade war
The week started with good news, from of all places, oil. Enbridge’s line 3 went online Sunday, which adds much-needed takeaway capacity for beleagured western oil. The line runs from Alberta, through Manitoba and into Wisconsin, and is the largest in Enbridge‘s history.
That said, Enbridge’s barely moved higher on Monday. In other oil news, Husky Energy announced it was cutting capex in 2020-21 by $500 million, based on a projected US$55/WTI barrel, down $5 from May’s Investor Day. Husky stock declined nearly a point. The overall TSX slipped below 17,000 after making record highs last week.
In the U.S., Trump’s latest tariffs pressured markets, with the Nasdaq falling 1.12%. Tech stocks were especially vulnerable Monday. AMD slipped 1.07%, Apple was down 1.16%, and Amazon, despite robust Black Friday and Cyber Monday sales, declined 1.07%. Trump announced steel and aluminum tariffs against Brazil and Argentina, claiming that the devaluation of those currencies would hurt American farmers. Regardless of the veracity of that statement, these tariffs open yet another U.S. trade war as Washington and Beijing continue to negotiate phase one of their trade deal, and America, Canada and Mexico have yet to sign their post-NAFTA treaty. Meanwhile, impeachment hearings against Trump continue.