Oil prices halt slide despite IEA warning of slower demand growth

Oil prices halt slide despite IEA warning of slower demand growth

Today's energy market summary:

  • After several down days, crude prices ended Friday in the positive, with Brent and WTI gaining 0.2% and 0.5%, respectively. Canadian Light crude staged a 2.5% rally while WCS rose a modest 0.4%.

  • Henry Hub natural gas prices declined another 2% today.

  • After being flat to lower for several months, Baker Hughes reported an increase in US oil rig counts today, rising by eight to a total of 869, the highest since March 2015. Canada also added 8 rigs, bringing the total of active oil rigs to 127.

  • Production out of the Gulf of Mexico continues to ramp up as companies work to restore operations on almost 90 platforms evacuated earlier in the week. Lost oil production out of the region has now reached about 3 million barrels, with 550,000 bbl/day yet to be restored.

  • The International Energy Agency trimmed its demand forecast by about 100,000 bbl/day for this year and next due to higher oil prices, ongoing trade concerns, a weaker economic outlook and downward revision in Chinese data.

  • After several days of heavy sell-offs, global markets recovered slightly today. The Canadian and US energy sectors also rose today, gaining 0.8% and 0.3%, respectively. Service sector stocks were the worst hit in Canada, while majors ExxonMobil (XOM -0.3%) and Chevron (CVX -0.6%) were the biggest drags in US energy markets.

Today's energy market movers:

  • Marathon Petroleum (MPC +1.7%) and Royal Dutch Shell (RDS.A -0.2%) were forced to shutdown their refineries in Washington State due to a loss of natural gas supply from BC. A third refinery, belonging to Philips 66 (PSX +0.3%), also curtailed production, sending gasoline prices sharply higher in the region. BC normally supplies about 1.1 Bcf/day of gas to the state, but volumes were cut to zero on Wednesday after an explosion near Prince George forced the shutdown of two Enbridge (ENB.TO +0.5%) pipelines. Enbridge has since restarted one of the lines and is in the process of restoring supplies to the US.

  • According to Bloomberg, French utility provider Engie and Quebec's Caisse de Depot are in talks to buy PetroBras' (PBR +3.3%) natural gas pipeline network, for as much as US$9 billion, about US$1 billion more than their initial bid. The 4,500 km TAG network spans ten states in northeastern Brazil and would be the company's largest divestment ever.

  • According to Reuters, Royal Dutch Shell (RDS.A -0.2%) is in talks to sell its 40% stake in its JV with Venezuela's PDVSA to French producer Maurel & Prom. The division produced about 33,000 bbl/day in 2016 in the western state of Zulia near Colombia. A sale would require approval from the Venezuelan government.

  • Noble Corp (NE +4.5%) plans to put two of its idled drillships back into service over the next few months, with one ship to be deployed in the US Gulf of Mexico for Talos Energy (TALO +1.1%) and another in Bulgaria for French oil major Total (TOT n/c).

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$80.43▲0.255.62
 
86.29
WTI$71.34▲0.549.29
 
76.41
CDN LT$44.20▲2.443.17
 
69.32
C5+$63.66▲0.751.08
 
71.40
WCS$25.89▲0.425.80
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ OCT 12   █ OCT 5   █ SEP 28   █ SEP 21   (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
  • Parex Resources (PXT +4.7%)
  • Parkland Fuel (PKI +3.1%)
  • Suncor (SU +3%)
  • Gran Tierra (GTE +2%)
  • Husky Energy (HSE +1.6%)
  • 12-MO HIGHS
  • Parkland Fuel (PKI +3.1%)
  • 10-YR HIGHS
  • Parkland Fuel (PKI +3.1%)
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Advantage Oil & Gas (AAV -2.7%)
  • Cenovus Energy (CVE -2.3%)
  • Baytex Energy (BTE -1.9%)
  • Shawcor (SCL -1.7%)
  • Trican Well (TCW -1.4%)
  • 12-MO LOWS
  • Freehold Royalties (FRU -0.6%)
  • PrairieSky (PSK -1.3%)
  • Whitecap Resources (WCP -1.4%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • Cdn Natural Res (CNQ +0.5%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    SuncorSU47.75▲3.040.49
     
    55.4746D   W
    Imperial OilIMO42.72▲0.733.43
     
    44.9193D   W
    Husky EnergyHSE20.25▲1.615.09
     
    22.9983D   W
    MIDSTREAM
    EnbridgeENB41.68▲0.537.36
     
    52.0951D   W
    TransCanadaTRP51.28▼0.050.28
     
    65.1832D   W
    Pembina PipelinePPL43.93▲1.137.60
     
    47.8487D   W
    Inter PipelineIPL21.66▼-1.021.36
     
    27.9223D   W
    Keyera KEY34.44▲0.931.20
     
    39.3157D   W
    Gibson EnergyGEI20.93▲0.815.68
     
    21.6496D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ37.85▲0.536.88
     
    49.0812D   W
    EncanaECA14.70▼-0.412.37
     
    18.5421↓D   W
    Cenovus EnergyCVE11.42▼-2.39.03
     
    14.8419D   W
    TourmalineTOU21.18▼-0.517.78
     
    27.2627D   W
    Seven GenerationsVII15.280.013.62
     
    21.2535D   W
    SERVICES
    ShawcorSCL23.63▼-1.723.51
     
    29.5019D   W
    Pason SystemsPSI20.11▼-0.316.05
     
    22.1087D   W
    Mullen Group MTL14.82▲0.214.10
     
    17.1246D   W
    EnerflexEFX16.81▼-0.813.55
     
    18.5990D   W
    Secure EnergySES7.93▼-1.36.98
     
    9.8258D   W
    REFINING & MARKETING
    Parkland FuelPKI45.96▲3.123.41
     
    46.4698D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Marathon Oil (MRO +2.8%)
  • Anadarko Petroleum (APC +2%)
  • Noble Energy (NBL +2%)
  • Marathon Petroleum (MPC +1.7%)
  • Helmerich & Payne (HP +1.7%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Cimarex Energy (XEC -1.6%)
  • Chevron (CVX -0.6%)
  • Halliburton (HAL -0.4%)
  • ONEOK (OKE -0.3%)
  • Exxon Mobil (XOM -0.3%)
  • 12-MO LOWS
  • Schlumberger (SLB +0.3%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM81.38▼-0.372.16
     
    89.3068D   W
    ChevronCVX117.77▼-0.6108.02
     
    133.8854D   W
    MIDSTREAM
    Kinder MorganKMI17.51▲0.514.69
     
    19.8376D   W
    Williams CoWMB26.68▲0.324.00
     
    33.6755D   W
    ONEOKOKE65.02▼-0.349.65
     
    71.9973D   W
    LARGE CAP E&P
    ConocoPhillipsCOP73.83▲1.448.97
     
    80.2489D   W
    EOG ResourcesEOG122.18▲0.495.36
     
    133.5385↓D   W
    Occidental PetroleumOXY76.96▲0.662.47
     
    87.6765D   W
    Anadarko PetroleumAPC67.63▲2.046.75
     
    76.7086D   W
    Concho ResourcesCXO150.43▼-0.1123.63
     
    163.1176D   W
    SERVICES
    SchlumbergerSLB59.33▲0.358.30
     
    80.3526D   W
    HalliburtonHAL39.60▼-0.435.75
     
    57.8618D   W
    National-Oilwell VarcoNOV41.91▼0.031.47
     
    49.0872D   W
    TechnipFMCFTI30.10▲0.824.53
     
    35.0051D   W
    Baker HughesBHGE30.85▲0.625.53
     
    37.7639D   W
    REFINERS
    Phillips 66PSX109.46▼0.089.14
     
    123.9761↓D   W
    Valero EnergyVLO108.25▲1.375.84
     
    126.9859D   W
    Marathon PetroleumMPC80.08▲1.755.68
     
    88.4573D   W
    HollyFrontierHFC66.47▲0.635.49
     
    83.2887D   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.A65.26▼-0.260.43
     
    73.8657D   W
    TotalTOT61.58▲0.053.37
     
    65.6972D   W
    BPBP44.55▲0.936.15
     
    47.8382D   W
    EniE36.14▼-0.331.58
     
    40.1556D   W
    EquinorEQNR26.88▲0.519.74
     
    28.9385D   W
    ANALYST RATINGS

    UPGRADES

    • Ensco (ESV): Upgraded from Hold to Buy at Societe Generale and from Underweight to Neutral at JPMorgan.

    • Noble (NE): Upgraded from Hold to Buy at Societe Generale.

    • Oceaneering International (OII): Upgraded from Hold to Buy at Societe Generale.

    • Valero Energy (VLO): Upgraded from Hold to Buy at Standpoint Research.

    DOWNGRADES

    • Antero Midstream Partners (AM): Downgraded from Overweight to Equal Weight at Barclays.

    • Diamond Offshore Drilling (DO): Downgraded from Neutral to Underweight at JPMorgan.

    • Halliburton (HAL): Downgraded from Buy to Hold at Societe Generale.

    • Rowan Companies (RDC): Downgraded from Overweight to Neutral at JP Morgan.

    • Sunoco (SUN): Downgraded from Overweight to Neutral at JP Morgan.

    • Weatherford International (WFT): Downgraded from Buy to Sell at Societe Generale.


    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 (DIVIDEND ADJUSTED)

    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.
    Energy stocks post another day of losses despite gains in oil prices

    Energy stocks post another day of losses despite gains in oil prices

    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