Wall Street Breakfast Podcast: Pemex Shifts Crude Exports

Mexican GOmart shop store at Pemex petrol gas station Mexico.

Arkadij Schell/iStock Editorial via Getty Images

Listen below or on the go on Apple Podcasts and Spotify

Mexico said to cut some oil exports as global supplies tighten. (00:23) EV startup Canoo (GOEV) raises going concern doubts as it runs low on cash. (01:19) Florida Supreme Court allows adult-use cannabis bill to go to November ballot. (02:10)

This is an abridged transcript of the podcast.

Mexican state-run oil company, Pemex, has canceled contracts to supply refiners in the United States, Europe and Asia with its flagship Maya crude.

Bloomberg News reported Monday, citing people familiar with the matter that the company instead will divert the supplies to domestic refiners.

Mexico on average exports about 600,000 barrels a day of Maya crude. The country’s suspension of exports comes as Brent crude prices reach a six-month high amid plans by OPEC and its allies to curb output.

Analysts at Goldman Sachs said European demand for oil has been stronger than expected this year, which may help to drive up prices. J.P. Morgan last week said global benchmark Brent could reach $100 a barrel this year as Russia cuts supplies.

Brent is trading at more than $88 per barrel. Crude oil futures are nearing $85 per barrel.

Electric vehicle startup Canoo (NASDAQ:GOEV) warned on Monday about its ability to continue as a going concern,

The company highlighted dwindling cash reserves amid a slump in the EV market.

Shares of the Torrance, California-based company are down 24% premarket.

The EV maker said that it would be required to terminate or curtail its operations if it was unable to obtain sufficient additional funding.

Canoo (GOEV) recorded a net loss of $29 million for the fourth quarter. Its cash and cash equivalents were $6.4 million as of December 31, compared with $36.6 million in the same period last year.

It sees 2024 revenue in the range of $50 million to $100 million, vs. analysts’ estimates of $152.5 million.

Florida’s Supreme Court has ruled to allow a referendum on adult-use cannabis — Amendment 3 — to proceed to the ballot this November.

Approval of the November ballot would enable adult-use sales to commence in May 2025.

“The approval of Amendment 3 represents a leap forward for Florida’s cannabis sector, poised to ignite economic expansion and job creation,” NewLake Capital Partners (OTCQX:NLCP) said in a statement.

Other articles to look out for on Seeking Alpha:

Fidelity to impose new $100 servicing fee on some ETFs

Disney winning proxy battle with Trian with more than half of votes cast – WSJ

FedEx lost a key USPS contract to UPS. Should investors be worried?

On our catalyst watch for the day,

  • Walmart (WMT) presenting at the J.P. Morgan Retail Conference, Vishay Intertechnology (VSH) Investor Day, an extraordinary meeting of M.D.C. Holdings (MDC) shareholders, and Intel Corporation’s (INTC) Investor Webinar.

  • GE Vernova will begin trading after the energy business completes its spinoff from General Electric (GE).

Market participants watched the major averages close mixed on Monday.

The Dow (DJI) was the weakest performer on the day as it ended lower by 0.6%. At the same time, the S&P 500 (SP500) also finished in the red by 0.2%, and the Nasdaq (COMP.IND) was able to finish on top by 0.1%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. Crude oil is up 1.9% at $85 per barrel. Bitcoin is down 5% at more than $66,000.

In the world markets, the FTSE 100 is up 0.4% and the DAX is down 0.1%.

The biggest movers for the day premarket: Following a 21% decline on Monday, shares of Trump Media (DJT) continue their downward trend in premarket hours, shedding about 3%. This decline erases the gains seen last week after the company went public.

On today’s economic calendar:

  • 10:00 Job Openings and Labor Turnover Survey

  • 10:10 Fed’s Michelle Bowman will speak on Bank mergers and acquisitions, and De Novo Bank formation: Implications for the future of the banking system.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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