Oil prices stabilize but energy stocks continue downward slide

Oil prices stabilize but energy stocks continue downward slide

Today's energy market summary:

  • World oil prices were little changed today, despite reports of another sizeable inventory build in US crude stockpiles. 

  • WCS rebounded 12% from yesterday's plunge, ending Wednesday at about US$22 a barrel. The discount on Edmonton Condensate widened to US$13, sending C5+ prices 4% lower.

  • North American equity markets continued their downward slide, led lower by mega-cap technology names. The NASDAQ was the worst performer, tumbling 4.4%. Most US indices have now wiped out all gains for the year.

  • The TSX also dropped 2.5%, breaking down to the lows of late 2016.

  • The energy sector declined 3.5% on the TSX and 3.8% on the S&P 500. Markets remain in defensive mode, with select staples and utilities names posting gains for the day.

  • Among TSX energy components, AltaGas (ALA.TO +0.5%) and Mullen Group (MTL.TO +0.5%) were the only patches of green. Several producers hit new multi-year lows again today.

  • All S&P 500 large-cap energy components declined on Wednesday, with Schlumberger (SLB -3.8%) and Halliburton (HAL -3.9%) once again sliding to multi-year lows.

  • European energy majors listed on the NYSE also posted losses for the day, pulled lower by a stronger US dollar, which rebounded to the highs of mid-August.

Today's notable market movers:

  • Royal Dutch Shell (RDS.A -2.7%) announced the start of production at Lula Extreme South in Brazil's Santos Basin. The FPSO, operated by PetroBras (PBR -3.9%), has the capacity to process 150,000 bbl/day of oil and 6 MMcf/day of natural gas. This is Shell’s 14th deepwater FPSO in Brazil.

  • Credit ratings agency Moody's cut Eni's (E -3.6%) long-term credit rating from A3 to Baa1, with a stable outlook. The downgrade is due Italy's 30.1% ownership of the oil major, and not related to the company's performance.

  • Pioneer Natural Resources (PXD -5.7%) warned investors it expects to take a US$135 million write-down in Q3 due to hedging losses. PXD is due to report third quarter results on November 7, 2018.

Today's notable third quarter earnings and analyst action:

  • Third quarter revenues at TechnipFMC (FTI -3.3%) declined 24% y/y to US$3.1 billion, while net income rose 13% to US$137 million. The company's backlog rose 9% to US$15.2 billion, with growth seen across all segments. The company says current softness in the US shale patch is likely "transitory."

  • CVR Refining (CVRR -6.4%), posted a net income of US$174 million, on sales of US$1.9 billion, up 34% y/y. The company processed 219,000 bbl/day of crude through its two refineries. Parent-company CVR Energy (CVI -6.4%) reported a net income of US$90 million on net sales of US$1.9 billion, also up 34% y/y.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$76.17▼0.456.25
 
86.29
WTI$66.82▲0.650.60
 
76.41
CDN LT$38.82▲1.038.43
 
69.32
C5+$53.82▼4.252.43
 
71.40
WCS$21.82▲12.319.43
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ OCT 24   █ OCT 17   █ OCT 10   █ OCT 3   (USD/BBL)
MARKET OVERVIEW
MARKETS
CURRENCIES & YIELDS
    TSX SECTORS
52-WK
    SPX SECTORS
52-WK
ENERGY SECTORS

TSX ENERGY SUB-SECTORS

SPX ENERGY SUB-SECTORS
TSX ENERGY STOCKS
TSX BULLISH INDICATORS
TOP 5
  • Altagas (ALA +0.5%)
  • Mullen Group (MTL +0.5%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Baytex Energy (BTE -7.6%)
  • Crescent Point (CPG -7.4%)
  • Nuvista Energy (NVA -7.3%)
  • TORC Oil & Gas (TOG -7%)
  • Paramount Res (POU -7%)
  • 12-MO LOWS
  • Cdn Natural Res (CNQ -2%)
  • Shawcor (SCL -2.5%)
  • Baytex Energy (BTE -7.6%)
  • Crescent Point (CPG -7.4%)
  • Ensign Energy Svcs (ESI -2.1%)
  • Freehold Royalties (FRU -3.1%)
  • Kelt Exploration (KEL -5.7%)
  • Nuvista Energy (NVA -7.3%)
  • Paramount Res (POU -7%)
  • PrairieSky (PSK -3.9%)
  • Trican Well (TCW -2.9%)
  • TORC Oil & Gas (TOG -7%)
  • Whitecap Res (WCP -5.1%)
  • 10-YR LOWS
  • Crescent Point (CPG -7.4%)
  • DEATH CROSSES
  • Shawcor (SCL -2.5%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    SuncorSU43.44▼-3.940.49
     
    55.4719D   W
    Imperial OilIMO41.09▼-3.933.43
     
    44.9184D   W
    Husky EnergyHSE18.75▼-4.515.09
     
    22.9937D   W
    MIDSTREAM
    EnbridgeENB41.17▼-2.837.36
     
    51.0476D   W
    TransCanadaTRP50.47▼-1.550.28
     
    65.1837D   W
    Pembina PipelinePPL43.99▼-2.337.60
     
    47.8491D   W
    Inter PipelineIPL21.94▼-2.121.36
     
    27.9255D   W
    Keyera KEY33.58▼-1.731.20
     
    38.9156D   W
    Gibson EnergyGEI21.26▼-2.415.68
     
    23.0498D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ36.06▼-2.036.00
     
    49.0812D   W
    EncanaECA13.34▼-4.412.37
     
    18.5410D   W
    Cenovus EnergyCVE10.89▼-2.49.03
     
    14.8420D   W
    TourmalineTOU19.37▼-3.117.78
     
    27.2615D   W
    Seven GenerationsVII13.62▼-4.013.51
     
    21.2512D   W
    SERVICES
    ShawcorSCL23.37▼-2.523.10
     
    29.5027D   W
    Pason SystemsPSI19.15▼-2.716.05
     
    22.1069↓D   W
    Mullen Group MTL15.37▲0.514.10
     
    17.1285D   W
    EnerflexEFX15.67▼-5.713.55
     
    17.8263D   W
    Secure EnergySES8.03▼-0.46.98
     
    9.8261D   W
    REFINING & MARKETING
    Parkland FuelPKI42.88▼-2.224.36
     
    47.4598D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • None
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Newfield Exploration (NFX -8%)
  • Cabot Oil & Gas (COG -6.9%)
  • Noble Energy (NBL -6.7%)
  • Marathon Oil (MRO -5.8%)
  • Pioneer Natural Res (PXD -5.7%)
  • 12-MO LOWS
  • Schlumberger (SLB -3.8%)
  • Halliburton (HAL -3.9%)
  • Cabot Oil & Gas (COG -6.9%)
  • EQT Corp (EQT -4.7%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM77.62▼-2.872.16
     
    89.3058D   W
    ChevronCVX110.21▼-2.8108.02
     
    133.8837D   W
    MIDSTREAM
    Kinder MorganKMI16.51▼-3.114.69
     
    19.8361D   W
    Williams CoWMB25.26▼-2.524.00
     
    33.6752D   W
    ONEOKOKE63.64▼-3.549.65
     
    71.9969D   W
    LARGE CAP E&P
    ConocoPhillipsCOP65.69▼-5.148.97
     
    80.2456↓D   W
    EOG ResourcesEOG106.14▼-4.595.67
     
    133.5333↓D   W
    Occidental PetroleumOXY68.23▼-3.462.47
     
    87.6731D   W
    Anadarko PetroleumAPC59.61▼-3.646.75
     
    76.7036↓D   W
    Concho ResourcesCXO134.61▼-5.1123.63
     
    163.1137D   W
    SERVICES
    SchlumbergerSLB53.01▼-3.852.97
     
    80.3513D   W
    HalliburtonHAL34.23▼-3.934.19
     
    57.863D   W
    Ntl-Oilwell VarcoNOV36.85▼-5.131.47
     
    49.0834↓D   W
    TechnipFMCFTI27.24▼-3.324.83
     
    35.0024D   W
    Baker HughesBHGE27.39▼-5.225.53
     
    37.7611D   W
    REFINERS
    Phillips 66PSX95.30▼-4.589.14
     
    123.9724D   W
    Valero EnergyVLO86.69▼-5.475.84
     
    126.989D   W
    Marathon PetroleumMPC68.06▼-5.655.87
     
    88.4523D   W
    HollyFrontierHFC61.01▼-5.335.62
     
    83.2856D   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.A61.35▼-2.760.62
     
    73.8641D   W
    TotalTOT56.96▼-3.553.37
     
    65.6945D   W
    BPBP40.99▼-3.136.15
     
    47.8349D   W
    EniE33.17▼-3.631.58
     
    40.1534D   W
    EquinorEQNR25.03▼-2.519.74
     
    28.9358D   W
    ANALYST RATINGS

    UPGRADES

    • Devon Energy (DVN): Upgraded from Equal Weight to Overweight at Capital One Financial.

    • Ensign Energy Services (ESI.TO): Upgraded from Market Perform to Outperform at Raymond James.

    • Marathon Oil (MRO): Upgraded from Market Perform to Outperform at Wells Fargo.

    • Whiting Petroleum (WLL): Upgraded from Market Perform to Outperform at Wells Fargo.

    DOWNGRADES

    • Trinidad Drilling (TDG.TO): Downgraded from Outperform to Market Perform at Raymond James.

    • QEP Resources (QEP): Downgraded from Outperform to Market Perform at Wells Fargo.


    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.
    Condensate prices continue to slide as discount widens to record high

    Condensate prices continue to slide as discount widens to record high

    WCS breaks below US$20 as markets continue to sell-off

    WCS breaks below US$20 as markets continue to sell-off

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