Market meltdown continues as WCS discount to WTI hits another all-time high

Market meltdown continues as WCS discount to WTI hits another all-time high

Today's energy market summary:

  • Brent and WTI declined over 3% for the day after the Energy Information Administration (EIA) reported a 6 million barrel build in crude stockpiles. US crude output rose to a record 11.2 million bbl/day, as production out of the Lower 48 continues to rise to record levels.

  • Western Canadian Select (WCS) declined a whopping 13% as the discount to WTI widened to US$45 a barrel, a new all-time high. The Canadian heavy benchmark ended the day at just under US$26, the lowest since August 2016.

  • Natural gas prices sank 2% after the EIA reported another build in stockpiles ahead of the winter heating season. Gasoline prices also declined 4%, falling below US$2 a gallon.

  • Production in the Gulf of Mexico is slowly returning to normal after Hurricane Michael passed through the region yesterday. An estimated 2.4 million barrels of oil were shut-in due to the storm since Monday. 

  • Global equity markets skidded lower again, continuing from yesterday’s sell-off. Energy was the worst performing sector on both the TSX and S&P 500, falling about 3%. Declines were broadly based across all of the subsectors, with Shawcor (SCL.TO -0.7%) falling to record low and Schlumberger (SLB -2.8%) reaching a new 12-month low.

Today's market movers:

  • After two of its natural gas pipelines were shutdown in northern BC on Tuesday, Enbridge (ENB.TO -2.6%) says one of those lines has been returned to service, and is slowly ramping up to full pressure. The shutdown occurred after an adjacent 36-inch ruptured and exploded just north of Prince George. The company has yet to establish a timetable for the ruptured pipeline.

  • After approving the Ohio segment of its TEAL pipeline on Tuesday, US federal regulators (FERC) approved the partial start-up of Enbridge's U$2.6 billion NEXUS pipeline, which runs from Ohio to Michigan. The 1.5 Bcf/day pipeline is jointly owned with DTE Energy (DTE -1.9%).

  • TransCanada (TRP.TO -2.5%) has commenced service on its US$3 billion Mountaineer XPress natural gas pipeline in West Virginia. The 2 Bcf/day line was cleared for start-up by FERC late last week.

  • Murphy Oil (MUR +11.6%) announced a joint-venture with Brazil's Petrobras (PBR -1.6%) to explore oil and gas fields in the Gulf of Mexico. The JV will be split 80/20 MUR/PBR. Murphy has agreed to pay Petrobras $900 million in cash, plus up to $150 million in contingencies based on price and production thresholds.

  • Despite a decline in the US dollar, foreign ADRs listed on the NYSE also sank lower again today.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$80.26▼3.455.62
 
86.29
WTI$70.97▼3.049.29
 
76.41
CDN LT$43.17▼4.643.17
 
69.32
C5+$63.22▼3.451.08
 
71.40
WCS$25.80▼12.925.80
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ OCT 11   █ OCT 4   █ SEP 27   █ SEP 20   (USD/BBL)
MARKET OVERVIEW
MARKETS
CURRENCIES & YIELDS
    TSX SECTORS
52-WK
    SPX SECTORS
52-WK
ENERGY SECTORS
ENERGY SUB-SECTORS

TSX ENERGY SUB-SECTORS

SPX ENERGY SUB-SECTORS
TSX ENERGY STOCKS
TSX BULLISH INDICATORS
TOP 5
  • CES Energy Solutions (CEU +2.9%)
  • Enerflex (EFX +0.8%)
  • Parkland Fuel (PKI +0.7%)
  • Trican Well (TCW +0.5%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Baytex Energy (BTE -6.3%)
  • Suncor (SU -5%)
  • Gran Tierra (GTE -4.7%)
  • Tourmaline (TOU -4.6%)
  • Cdn Natural Res (CNQ -3.8%)
  • 12-MO LOWS
  • Shawcor (SCL -0.7%)
  • CES Energy Solutions (CEU +2.9%)
  • Freehold Royalties (FRU -1%)
  • PrairieSky (PSK -2%)
  • Trican Well (TCW +0.5%)
  • Whitecap Resources (WCP -0.7%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    SuncorSU46.36▼-5.040.49
     
    55.4730↓D   W
    Imperial OilIMO42.44▼-0.933.43
     
    44.9193D   W
    Husky EnergyHSE19.93▼-2.515.09
     
    22.9974D   W
    MIDSTREAM
    EnbridgeENB41.49▼-2.637.36
     
    52.0952D   W
    TransCanadaTRP51.29▼-2.550.28
     
    65.1834D   W
    Pembina PipelinePPL43.45▼-1.537.60
     
    47.8485D   W
    Inter PipelineIPL21.88▼-0.521.36
     
    27.9231D   W
    Keyera KEY34.15▼-1.031.20
     
    39.3154D   W
    Gibson EnergyGEI20.77▼-1.915.68
     
    21.6496D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ37.65▼-3.836.88
     
    49.0812D   W
    EncanaECA14.76▼-3.512.37
     
    18.5425↓D   W
    Cenovus EnergyCVE11.69▼-3.59.03
     
    14.8429↓D   W
    TourmalineTOU21.28▼-4.617.78
     
    27.2635D   W
    Seven GenerationsVII15.28▼-3.613.62
     
    21.2537D   W
    SERVICES
    ShawcorSCL24.03▼-0.723.51
     
    30.1026↓D   W
    Pason SystemsPSI20.16▼-3.216.05
     
    22.1088D   W
    Mullen Group MTL14.79▼-2.514.10
     
    17.1245D   W
    EnerflexEFX16.95▲0.813.55
     
    18.5993D   W
    Secure EnergySES8.03▼-3.76.98
     
    9.8271D   W
    REFINING & MARKETING
    Parkland FuelPKI44.59▲0.723.41
     
    45.4998D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • HollyFrontier (HFC +0.2%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Marathon Oil (MRO -5.7%)
  • Newfield Exploration (NFX -5.4%)
  • Pioneer Natural Res (PXD -4.3%)
  • Baker Hughes (BHGE -4%)
  • EOG Resources (EOG -3.8%)
  • 12-MO LOWS
  • Schlumberger (SLB -2.8%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM81.60▼-3.572.16
     
    89.3076D   W
    ChevronCVX118.43▼-3.4108.02
     
    133.8864D   W
    MIDSTREAM
    Kinder MorganKMI17.42▼-3.214.69
     
    19.8380D   W
    Williams CoWMB26.59▼-2.224.00
     
    33.6758D   W
    ONEOKOKE65.22▼-3.149.65
     
    71.9980D   W
    LARGE CAP E&P
    ConocoPhillipsCOP72.79▼-3.148.89
     
    80.2490D   W
    EOG ResourcesEOG121.62▼-3.895.36
     
    133.5387D   W
    Occidental PetroleumOXY76.53▼-1.862.47
     
    87.6768D   W
    Anadarko PetroleumAPC66.28▼-2.546.75
     
    76.7083D   W
    Concho ResourcesCXO150.56▼-1.7123.63
     
    163.1181D   W
    SERVICES
    SchlumbergerSLB59.12▼-2.858.65
     
    80.3526↓D   W
    HalliburtonHAL39.75▼-2.235.75
     
    57.8622↓D   W
    National-Oilwell VarcoNOV41.90▼-2.331.47
     
    49.0875D   W
    TechnipFMCFTI29.83▼-1.824.53
     
    35.0051D   W
    Baker HughesBHGE30.66▼-4.025.53
     
    37.7637D   W
    REFINERS
    Phillips 66PSX109.46▼-3.289.14
     
    123.9767D   W
    Valero EnergyVLO106.89▼-3.675.84
     
    126.9858↓D   W
    Marathon PetroleumMPC78.73▼-2.455.68
     
    88.4572↓D   W
    HollyFrontierHFC66.04▲0.235.49
     
    83.2888D   W
    NYSE ADRs
    ADRs BULLISH INDICATORS
    12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • ADRs BEARISH INDICATORS
    12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A65.42▼-2.360.43
     
    73.8664D   W
    TotalTOT61.57▼-2.353.37
     
    65.6979D   W
    BPBP44.13▼-2.336.15
     
    47.8382D   W
    EniE36.30▼-2.031.58
     
    40.1565D   W
    EquinorEQNR26.74▼-2.719.74
     
    28.9386D   W
    ANALYST RATINGS

    UPGRADES

    • California Resources (CRC): Upgraded from Hold to Buy at Societe Generale.

    • Marathon Petroleum (MPC): Upgraded from Hold to Buy at Tudor Pickering.

    • Murphy Oil (MUR): Upgraded from Hold to Buy at National Alliance Securities.

    DOWNGRADES

    • Valero Energy (VLO): Downgraded from Buy to Hold at Tudor Pickering.


    UPDATED: DAILY (END-OF-DAY)

    SOURCES:
    • OIL PRICES REFLECT NEAR MONTH CONTRACT FROM THE NYMEX/CME GROUP
    • EQUITY PRICES PROVIDED BY NYSE & TMX GROUP
    • CHARTPACKS COURTESY STOCKCHARTS.COM

    NOTES:
    • OIL PRICES, FUTURES AND DIFFERENTIALS IN USD/BBL
    • C5+ = EDMONTON CONDENSATE
    • FUTURES CURVES SHOW PRICES FOR NEAR-MONTH CONTRACT (C1) AND NEXT 5-MONTHS (C2-C6)
    • TSX SHARE PRICES IN CAD; S&P 500 PRICES IN USD
    • ADR: AMERICAN DEPOSITORY RECEIPTS LISTED ON NYSE IN USD
    • SHARE PRICE CHANGES (INCL. NEW HIGHS & LOWS) EXCLUDE DIVIDENDS

    RANK:
    • BASED ON STOCKCHARTS TECHNICAL RANK (SCTR)
    • REFLECTS RELATIVE STRENGTH AMONG OTHER ENERGY STOCKS (PERCENTILE RANKING)
    • RISING RANK (↑) REFLECTS INCREASING RELATIVE STRENGTH
    • FALLING RANK (↓) REFLECTS DECREASING RELATIVE STRENGTH.
    Oil prices halt slide despite IEA warning of slower demand growth

    Oil prices halt slide despite IEA warning of slower demand growth

    Oil prices sink on inflation fears, sending Canadian crude prices tumbling to new lows

    Oil prices sink on inflation fears, sending Canadian crude prices tumbling to new lows

    0