Oil prices enter downward spiral as OPEC warns of too much supply

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.

  • US natural gas prices shot up another 8.3% on Tuesday, while gasoline plunged almost 6%, giving up all gains from the past few days.

  • Energy was once again the worst performing sector in both Canadian and US markets, falling 2.8% on the TSX and 2.4% on the S&P 500. This is the fourth consecutive days of losses for energy stocks.

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. 

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$65.47▼6.660.49
 
86.29
WTI$55.69▼7.154.30
 
76.41
CDN LT$20.83▼16.820.83
 
69.32
C5+$37.76▼9.937.76
 
71.40
WCS$12.59▼24.612.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ NOV 13   █ NOV 6   █ OCT 30   █ OCT 23   (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
  • Tourmaline (TOU +1.9%)
  • ARC Resources (ARX +1.4%)
  • Altagas (ALA +0.8%)
  • Peyto Exploration (PEY +0.4%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • CES Energy (CEU -10.3%)
  • Baytex Energy (BTE -10%)
  • Trican Well Svc (TCW -8.4%)
  • Parex Resources (PXT -6%)
  • Kelt Exploration (KEL -5.6%)
  • 12-MO LOWS
  • Keyera (KEY -1.7%)
  • Encana (ECA -3.8%)
  • Seven Generations (VII -1.6%)
  • Mullen Group (MTL -1.3%)
  • Baytex Energy (BTE -10%)
  • CES Energy (CEU -10.3%)
  • Crescent Point (CPG -3.6%)
  • Kelt Exploration (KEL -5.6%)
  • Nuvista Energy (NVA -5.4%)
  • Paramount Res (POU -1.5%)
  • PrairieSky (PSK -4.1%)
  • Trican Well Svc (TCW -8.4%)
  • TORC O&G (TOG -2.9%)
  • Vermilion Energy (VET -0.3%)
  • Whitecap Res (WCP -3.9%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU43.09▼-2.840.49
     
    55.4721D   W
    Imperial OilIMO40.60▼-2.533.43
     
    44.9148D   W
    Husky EnergyHSE17.61▼-1.515.09
     
    22.9925D   W
    MIDSTREAM
    EnbridgeENB43.25▼-0.637.36
     
    51.0475D   W
    TransCanadaTRP50.99▼-1.248.92
     
    65.1838D   W
    Pembina PipelinePPL44.35▼-1.337.60
     
    47.8477↓D   W
    Inter PipelineIPL22.62▼-0.320.68
     
    27.9264D   W
    Keyera KEY28.72▼-1.728.45
     
    38.9115D   W
    Gibson EnergyGEI22.72▼-0.215.68
     
    23.3298D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ36.07▼-3.135.31
     
    49.0818D   W
    EncanaECA10.71▼-3.810.68
     
    18.545D   W
    Cenovus EnergyCVE11.04▼-4.19.03
     
    14.8422D   W
    TourmalineTOU19.04▲1.917.78
     
    26.8519D   W
    Seven GenerationsVII11.95▼-1.611.57
     
    19.998D   W
    SERVICES
    ShawcorSCL21.74▼-0.321.03
     
    29.5019D   W
    Pason SystemsPSI21.96▼-2.316.05
     
    24.5794D   W
    Mullen Group MTL13.42▼-1.313.38
     
    16.9326D   W
    EnerflexEFX17.85▼-2.313.55
     
    18.7296D   W
    Secure EnergySES8.14▼-3.26.98
     
    9.8274D   W
    REFINING & MARKETING
    Parkland FuelPKI39.06▼-4.324.97
     
    47.4590D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Cabot O&G (COG +4.3%)
  • Baker Hughes (BHGE +0.7%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • EQT Corp (EQT -46.4%)
  • Halliburton (HAL -5.6%)
  • TechnipFMC (FTI -5%)
  • Marathon Oil (MRO -4.6%)
  • Schlumberger (SLB -4.3%)
  • 12-MO LOWS
  • Schlumberger (SLB -4.3%)
  • Halliburton (HAL -5.6%)
  • TechnipFMC (FTI -5%)
  • Baker Hughes (BHGE +0.7%)
  • EQT Corp (EQT -46.4%)
  • 10-YR LOWS
  • Baker Hughes (BHGE +0.7%)
  • DEATH CROSSES
  • Phillips 66 (PSX -2.9%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM78.00▼-2.472.16
     
    89.3048D   W
    ChevronCVX115.35▼-1.7107.54
     
    133.8841D   W
    MIDSTREAM
    Kinder MorganKMI17.18▼-1.714.69
     
    19.8364D   W
    Williams CoWMB24.32▼-2.023.54
     
    33.6721↓D   W
    ONEOKOKE61.01▼-2.249.65
     
    71.9935D   W
    LARGE CAP E&P
    ConocoPhillipsCOP63.72▼-2.348.97
     
    80.2426D   W
    EOG ResourcesEOG98.52▼-2.796.54
     
    133.539D   W
    Occidental PetroOXY70.78▼-1.962.47
     
    87.6728D   W
    Anadarko PetroAPC54.93▼-2.446.80
     
    76.7010D   W
    Concho ResCXO127.50▼-1.8123.63
     
    163.1113D   W
    SERVICES
    SchlumbergerSLB47.34▼-4.347.25
     
    80.352D   W
    HalliburtonHAL32.27▼-5.632.10
     
    57.862D   W
    Ntl-Oilwell VarcoNOV32.91▼-3.631.47
     
    49.085D   W
    TechnipFMCFTI23.53▼-5.023.51
     
    35.003D   W
    Baker HughesBHGE23.80▲0.723.45
     
    37.762D   W
    REFINERS
    Phillips 66PSX94.80▼-2.989.14
     
    123.9712D   W
    Valero EnergyVLO83.57▼-2.880.00
     
    126.984D   W
    Marathon PetroMPC64.17▼-2.660.10
     
    88.4510D   W
    HollyFrontierHFC60.81▼-4.241.68
     
    83.2824D   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.A60.72▼-2.360.53
     
    73.8612D   W
    TotalTOT54.85▼-2.653.37
     
    65.6922D   W
    BPBP39.81▼-2.636.15
     
    47.8326D   W
    EniE33.66▼-2.732.13
     
    40.1529D   W
    EquinorEQNR23.58▼-3.419.76
     
    28.9321D   W
    ANALYST RATINGS

    UPGRADES

    • 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.

    DOWNGRADES

    • Andeavor Logistics (ANDX): Downgraded from Buy to Hold at SunTrust Banks.


    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.
    WTI posts first gain in 12 sessions as OPEC comes to the rescue

    WTI posts first gain in 12 sessions as OPEC comes to the rescue

    Oil prices slide despite Saudi pledge to cut production

    Oil prices slide despite Saudi pledge to cut production

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