Oil prices enter downward spiral as OPEC warns of too much supply
Today's energy market summary:
Brent and WTI sank another 7% on Tuesday after OPEC warned that oil markets will likely return to being oversupplied next year, due to growth in non-OPEC supply and slowing demand. The cartel also reported another increase in OPEC supply, rising 127,000 bbl/day to 32.9 million bbl/day in October.
Brent ended the day at US$65.50/bbl, the lowest since last March, while WTI fell to a 1-year low of US$55.70/bbl.
Canadian Light and WCS sank in sympathy, falling to less than US$21 and US$13, respectively. Differentials on Canadian benchmarks were again unchanged for the day.
Today's notable energy news:
Speaking at today's investor day meeting in Toronto, TransCanada (TRP.TO -0.6%) CEO Russ Girling reassured investors they can expect dividends to increase by 8% to 10% annually through 2021. Girling says TRP has $36 billion in projects coming online through 2023, not including Keystone XL.
GE (GE +7.8%) announced plans to sell up to 101 million shares in Baker Hughes (BHGE +0.7%), aiming to raise about US$4 billion in cash. After the sale, GE's ownership of BHGE drops from 62.5% to 50%, and will eventually drop to zero over the next few years.
HollyFrontier (HFC -4.2%) announced plans to buy Sonneborn for US$655 million. Sonneborn is a manufacturer of white oils, petrolatums and waxes, used primarily in food, drugs and personal care products.
EQT (EQT -1.6%) completed the spin-off of its midstream business, leaving it with just the upstream holdings. The new midstream business has been named Equitrans Midstream (ETRN +5.9%) and began trading on the NYSE last week.
|CURRENCIES & YIELDS|
|Suncor Energy||SU||43.09||▼-2.8||40.49||55.47||21||D W|
|Imperial Oil||IMO||40.60||▼-2.5||33.43||44.91||48||D W|
|Husky Energy||HSE||17.61||▼-1.5||15.09||22.99||25||D W|
|Pembina Pipeline||PPL||44.35||▼-1.3||37.60||47.84||77↓||D W|
|Inter Pipeline||IPL||22.62||▼-0.3||20.68||27.92||64||D W|
|Gibson Energy||GEI||22.72||▼-0.2||15.68||23.32||98||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||36.07||▼-3.1||35.31||49.08||18||D W|
|Cenovus Energy||CVE||11.04||▼-4.1||9.03||14.84||22||D W|
|Seven Generations||VII||11.95||▼-1.6||11.57||19.99||8||D W|
|Pason Systems||PSI||21.96||▼-2.3||16.05||24.57||94||D W|
|Mullen Group||MTL||13.42||▼-1.3||13.38||16.93||26||D W|
|Secure Energy||SES||8.14||▼-3.2||6.98||9.82||74||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||39.06||▼-4.3||24.97||47.45||90||D W|
|Exxon Mobil||XOM||78.00||▼-2.4||72.16||89.30||48||D W|
|Kinder Morgan||KMI||17.18||▼-1.7||14.69||19.83||64||D W|
|Williams Co||WMB||24.32||▼-2.0||23.54||33.67||21↓||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||98.52||▼-2.7||96.54||133.53||9||D W|
|Occidental Petro||OXY||70.78||▼-1.9||62.47||87.67||28||D W|
|Anadarko Petro||APC||54.93||▼-2.4||46.80||76.70||10||D W|
|Concho Res||CXO||127.50||▼-1.8||123.63||163.11||13||D W|
|Ntl-Oilwell Varco||NOV||32.91||▼-3.6||31.47||49.08||5||D W|
|Baker Hughes||BHGE||23.80||▲0.7||23.45||37.76||2||D W|
|Phillips 66||PSX||94.80||▼-2.9||89.14||123.97||12||D W|
|Valero Energy||VLO||83.57||▼-2.8||80.00||126.98||4||D W|
|Marathon Petro||MPC||64.17||▼-2.6||60.10||88.45||10||D W|
EnLink MidStream (ENLC): Upgraded from Neutral to Outperform at Credit Suisse.
Southwestern Energy (SWN): Upgraded from Underperform to Neutral at BofA.
Vermilion Energy (VET.TO): Upgraded from Outperform to Strong Buy at Raymond James.
Andeavor Logistics (ANDX): Downgraded from Buy to Hold at SunTrust Banks.
UPDATED: DAILY (END-OF-DAY)
• OIL PRICES REFLECT NEAR MONTH CONTRACT FROM THE NYMEX/CME GROUP
• EQUITY PRICES PROVIDED BY NYSE & TMX GROUP
• CHARTPACKS COURTESY STOCKCHARTS.COM (DIVIDEND ADJUSTED)
• 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
• 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.