Canada’s benchmark index looked set to open lower on Wednesday, dragged down by falling oil prices .
Stock futures for the March quarter on the S&P TSX index were down 0.01% recently.
Action Economics said crude prices are down for a third consecutive session in what is now the biggest percent correction oil has seen since the first week of December. API data showed a 3.2 million barrel build in U.S. oil inventories in the latest reporting week, and the median forecast in a Reuters survey is for official EIA data to show the first rise in inventories in 11 weeks, with a 100,000 barrel increase forecast. Crude stocks in the U.S. have fallen by 12 million barrels so far in January, which is the biggest drop in the first month of the year in 30 years, according to Reuters. Signs that this trend may be pausing is giving some impetus for lower crude prices, especially amid expectations for U.S. supply to ramp higher and amid record high speculative positioning, which puts in conditions for a potential long squeeze.
The TSX shed 139 points on Tuesday, weighed down by healthcare and energy stocks.
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