Oil prices rebound as Hurricane Michael takes more GoM production offline

Oil prices rebound as Hurricane Michael takes more GoM production offline

Today’s energy market action:

  • Oil prices mostly gained ground on Tuesday, except for Canadian Light, where the differential to WTI widened by another US$1 per barrel.

  • Hurricane Michael continues to wreck havoc in the Gulf of Mexico, taking 40% of the region's oil production offline. According to the BSEE, 75 platforms were evacuated in the past few days, shutting in 670,000 bbl/day of oil and 726 MMcf/day of natural gas.

  • The IEA urged OPEC to boost production, warning that higher oil prices may trigger a sharp slowdown in emerging markets, putting the global economy at risk.

  • The US and Canadian energy sectors diverged again today, as the TSX energy basket sank almost 0.5% while SPX energy components rose 1%. Energy services stocks posted the nicest gains in Canada, while independent refiners dragged the US sector lower.

Today's midstream action:

  • Enbridge (ENB.TO +0%) put part of its TEAL natural gas pipeline into service in the state of Ohio. TEAL feeds into the NEXUS pipeline, which runs from Ohio to Michigan.

  • Ratings agency Moody's warns that TransCanada (TRP -1.6%) is at risk of being downgraded, due to its recent sanction of the $6.2 billion Coastal GasLine project. The firm says the negative revision could be alleviated if the company finds a joint-venture partner.

  • Antero Midstream Partners (AM +14.1%) has agreed to be acquired by Antero Midstream (AMGP +9.2%). AM shareholders will receive US$3.415 in cash and 1.635 shares of the new Antero Midstream Corp stock.

  • Williams Co (WMB -0.2%) announced binding, 15-year commitments from Seneca Resources and Cabot Oil & Gas (COG +0.3%) for 100% of transport capacity on its proposed Leidy South expansion of the Transco interstate pipeline. The company says it has commenced preliminary planning activities for the expansion. Seneca is a subsidiary of National Fuel Gas Company (NFG +0.8%).

Other notable market movers:

  • Shale oil producer EOG Resources (EOG +1.9%) warned of a pending hedging loss of $52 million in the third quarter.

  • Devon Energy (DVN +1.9%) filed for US$3 billion in revolving credit, with up to US$500 million dedicated to its Canadian operations. The company says the funds will be used for general accounting purposes.

  • Goldman Sachs cut price targets for Occidental Petroleum (OXY +0.6%), Murphy Oil (MUR -0.1%), Continental Resources (CLR -0.5%), EP Energy (EPE +0%), Devon Energy (DVN +1.9%) and Cabot Oil & Gas (COG +0.3%), and increased targets for Apache (APA +2.7%), Concho Resources (CXO +2.3%) and Range Resources (RRC +3.2%). The investment firm says is expects E&P stocks to do better than forecasted, if spending is kept under control.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$85.00▲1.355.62
 
86.29
WTI$74.96▲0.949.29
 
76.41
CDN LT$48.70▼1.148.46
 
69.32
C5+$67.27▲1.051.08
 
71.40
WCS$32.48▲0.530.41
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ OCT 9   █ OCT 2   █ SEP 25   █ SEP 18   (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
  • Advantage Oil & Gas (AAV +4.1%)
  • Birchcliff Energy (BIR +4.1%)
  • ARC Resources (ARX +4%)
  • Ensign Energy Services (ESI +3.6%)
  • Peyto Exploration (PEY +3.6%)
  • 12-MO HIGHS
  • Gibson Energy (GEI +0.1%)
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Cdn Natural Res (CNQ -2.4%)
  • Whitecap Resources (WCP -2%)
  • Parex Resources (PXT -1.8%)
  • Kelt Exploration (KEL -1.7%)
  • TransCanada (TRP -1.6%)
  • 12-MO LOWS
  • Freehold Royalties (FRU -0.8%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    SuncorSU50.42▼-0.540.49
     
    55.4776D   W
    Imperial OilIMO44.11▲1.233.43
     
    44.9194↑D   W
    Husky EnergyHSE21.04▲0.315.09
     
    22.9988D   W
    MIDSTREAM
    EnbridgeENB43.63▼-0.137.36
     
    52.0974D   W
    TransCanadaTRP52.90▼-1.650.28
     
    65.1840D   W
    Pembina PipelinePPL45.28▼-0.337.60
     
    47.8490D   W
    Inter PipelineIPL22.29▼-0.521.36
     
    27.9231D   W
    Keyera KEY34.98▲1.131.20
     
    39.3157D   W
    Gibson EnergyGEI21.50▲0.115.68
     
    21.6497↑D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ40.34▼-2.436.88
     
    49.0824D   W
    EncanaECA16.32▼-1.412.37
     
    18.5480D   W
    Cenovus EnergyCVE12.86▼-1.59.03
     
    14.8479D   W
    TourmalineTOU23.41▲3.517.78
     
    27.2686D   W
    Seven GenerationsVII16.45▲1.413.62
     
    21.2577↑D   W
    SERVICES
    ShawcorSCL24.75▼-0.723.60
     
    30.1032D   W
    Pason SystemsPSI20.83▲1.116.05
     
    22.1090↑D   W
    Mullen Group MTL15.56▲0.914.10
     
    17.1273D   W
    EnerflexEFX17.24▲1.813.55
     
    18.5993↑D   W
    Secure EnergySES8.67▲2.76.98
     
    9.8291D   W
    REFINING & MARKETING
    Parkland FuelPKI42.19▼-0.523.41
     
    43.9397↓D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Pioneer Natural Res (PXD +3.3%)
  • Apache (APA +2.7%)
  • National-Oilwell Varco (NOV +2.5%)
  • Baker Hughes (BHGE +2.3%)
  • Concho Resources (CXO +2.2%)
  • 12-MO HIGHS
  • EOG Resources (EOG +1.9%)
  • Apache (APA +2.7%)
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Valero Energy (VLO -0.5%)
  • Phillips 66 (PSX -0.4%)
  • Williams Co (WMB -0.2%)
  • Marathon Petroleum (MPC -0.1%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM86.51▲0.472.16
     
    89.3082D   W
    ChevronCVX126.82▲1.6108.02
     
    133.8877↑D   W
    MIDSTREAM
    Kinder MorganKMI18.57▲2.014.69
     
    19.8389D   W
    Williams CoWMB27.63▼-0.224.00
     
    33.6752D   W
    ONEOKOKE68.72▲0.549.65
     
    71.9984↑D   W
    LARGE CAP E&P
    ConocoPhillipsCOP79.40▲1.448.83
     
    80.2497D   W
    EOG ResourcesEOG132.35▲1.995.36
     
    133.5395D   W
    Occidental PetroleumOXY82.23▲0.662.47
     
    87.6783D   W
    Anadarko PetroleumAPC70.61▲1.946.75
     
    76.7090↑D   W
    Concho ResourcesCXO159.96▲2.2123.63
     
    163.1191↑D   W
    SERVICES
    SchlumbergerSLB63.11▲0.359.25
     
    80.3535D   W
    HalliburtonHAL42.14▲0.335.75
     
    57.8631D   W
    National-Oilwell VarcoNOV45.45▲2.531.47
     
    49.0878D   W
    TechnipFMCFTI30.89▲2.224.53
     
    35.0041D   W
    Baker HughesBHGE32.63▲2.325.53
     
    37.7643D   W
    REFINERS
    Phillips 66PSX117.68▼-0.489.14
     
    123.9783D   W
    Valero EnergyVLO115.66▼-0.575.84
     
    126.9879D   W
    Marathon PetroleumMPC83.76▼-0.155.68
     
    88.4582D   W
    HollyFrontierHFC68.64▲1.635.49
     
    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.A68.31▲0.960.32
     
    73.8659D   W
    TotalTOT63.19▲1.453.34
     
    65.6964D   W
    BPBP46.01▲0.436.15
     
    47.8376D   W
    EniE37.37▲2.231.58
     
    40.1554D   W
    EquinorEQNR28.23▲2.819.74
     
    28.9387D   W
    ANALYST RATINGS

    UPGRADES

    • Baker Hughes (BHGE): Upgraded from Hold to Buy at Jefferies Financial.

    • Ensco (ESV): Upgraded from Market Perform to Outperform at Wells Fargo.

    • Suncor Energy (SU.TO): Upgraded from Neutral to Outperform at Macquarie.

    DOWNGRADES

    • Canadian Natural Resources (CNQ.TO): Downgraded from Outperform to Neutral at Macquarie.

    • Continental Resources (CLR): Downgraded from Outperform to Market Perform at BMO.

    • Delek US (DK): Downgraded from Conviction Buy to Buy at Goldman Sachs.

    • PetroChina (PTR): Downgraded from Outperform to Neutral at Macquarie.

    • Source Energy Services (SHLE.TO): Downgraded from Buy to Hold at GMP Securities.


    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 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

    Oil prices recover morning losses after Hurricane Michael takes aim at the Gulf of Mexico

    Oil prices recover morning losses after Hurricane Michael takes aim at the Gulf of Mexico

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