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

Today's energy market summary:

  • Brent and WTI rallied 1% on Wednesday, the first meaningful increase since November 5th, on renewed hopes for more production cuts out of OPEC.

  • The oil cartel now says they may cut output by as much as 1.4 million bbl/day next year. An official statement is not expected until December 6, when OPEC and Russia meet in Vienna.

  • The International Energy Agency (IEA) cut its oil demand growth forecast for emerging markets, and now predicts a 2 million bbl/day global inventory build for the first half of 2019.

  • The American Petroleum Institute (API) is forecasting another 8.8 million barrel build in US crude stockpiles. Official figures from the US Energy Information Administration (EIA) are due tomorrow morning.

  • Henry Hub surged 18%, ending the day at US$4.84/MMBtu, the highest since early 2014. Natural gas stockpiles sit at a 15-year seasonal low, as a winter blast heads for the eastern seaboard.

  • US equity markets failed to rally again today, as both the Dow and Nasdaq sank another 1%. The S&P 500 posted its fifth day of losses, falling 0.8%, with most sectors ending the day lower. The SPX energy sector dipped 0.1%.

  • In Toronto, the TSX managed to end Wednesday unchanged, as a 1% gain in the energy and materials sectors offset heavy losses in cannabis stocks.

Today's notable energy news:

  • Suncor Energy (SU.TO +2.7%) CEO Steve Williams announced his retirement effective May 2019. Williams has been with Suncor since 2002 and will be replaced by Mark Little, who currently serves as COO.

  • FERC has approved the start-up of certain sections of TransCanada's (TRP.TO +2.1%) WB XPress natural gas pipeline in West Virginia and Virginia. The 1.3 Bcf/day line delivers gas from the Marcellus and Utica shale to parts of the US and Canada. The company also says its 2 Bcf/day Mountaineer pipeline in West Virginia and 880 MMcf/day Gulf XPress projects will be completed by the end of this year.

  • According to Bloomberg, ConocoPhillips (COP +0.6%) is looking to sell its remaining assets in the UK North Sea by the end of this year. The properties are worth an estimated US$3 billion.

  • Cheniere Energy (LNG -1.6%) says it began producing LNG at its Corpus Christi export terminal in Texas, in preparation for the facility's first cargo shipment. This is the third major LNG export terminal to be put into service in the US.

  • Oilfield services firm Weatherford (WFT -12.0%) hit penny-stock status this week, as shares have now sunk to a 29-year low. The company has US$7.6 billion in debt and has hired a new CEO to help restructure its operations, sell-off non-core businesses and reduce costs. Although a debt-default is not yet on the table, the company could be delisted from the Nasdaq if share prices don't recover in the next 30 days.

  • Warren Buffet's Berkshire Hathaway (BRK.B -0.9%) cut its stake in Phillips 66 (PSX +0.8%) to 15.4 million shares by the end of Q2, about half the previous quarter.

Third quarter earnings on the TSX:

  • Birchcliff Energy (BIR +3.1%) posted a net profit of $7.7 million, versus $121 million loss for the same quarter last year. Revenues rose 40% y/y to $157 million, while production increased 22% to 79,331 boe/day. For 2019, the company is targeting 77,000 boe/day of output, roughly unchanged from this year.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$66.12▲1.060.62
 
86.29
WTI$56.25▲1.054.54
 
76.41
CDN LT$21.32▲2.320.83
 
69.32
C5+$38.44▲1.837.76
 
71.40
WCS$13.31▲5.712.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ NOV 14   █ NOV 7   █ OCT 31   █ OCT 24   (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
  • Advantage O&G (AAV +7.5%)
  • CES Energy (CEU +5.4%)
  • Paramount Res (POU +5.2%)
  • Peyto Exploration (PEY +4.8%)
  • Tourmaline (TOU +4.4%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Crescent Point (CPG -4.3%)
  • Encana (ECA -4%)
  • Freehold Royalties (FRU -2.8%)
  • Parkland Fuel (PKI -2.7%)
  • Cenovus Energy (CVE -2.4%)
  • 12-MO LOWS
  • Encana (ECA -4%)
  • Mullen Group (MTL -1.4%)
  • Baytex Energy (BTE +2.7%)
  • Crescent Point (CPG -4.3%)
  • Freehold Royalties (FRU -2.8%)
  • Kelt Exploration (KEL -0.4%)
  • Nuvista Energy (NVA +0.9%)
  • PrairieSky (PSK -1.4%)
  • Whitecap Res (WCP +1.6%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU44.26▲2.740.49
     
    55.4726D   W
    Imperial OilIMO41.55▲2.333.43
     
    44.9166D   W
    Husky EnergyHSE17.77▲0.915.09
     
    22.9928D   W
    MIDSTREAM
    EnbridgeENB42.61▲0.137.36
     
    51.0481D   W
    TransCanadaTRP52.04▲2.148.92
     
    65.1855D   W
    Pembina PipelinePPL43.97▼-0.937.60
     
    47.8470↓D   W
    Inter PipelineIPL22.80▲0.820.68
     
    27.9274D   W
    Keyera KEY29.00▲1.028.45
     
    38.9116D   W
    Gibson EnergyGEI22.36▼-1.615.68
     
    23.3298D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ36.36▲0.835.31
     
    49.0820D   W
    EncanaECA10.28▼-4.010.09
     
    18.544D   W
    Cenovus EnergyCVE10.78▼-2.49.03
     
    14.8418D   W
    TourmalineTOU19.87▲4.417.78
     
    26.4126D   W
    Seven GenerationsVII12.03▲0.711.57
     
    19.409D   W
    SERVICES
    ShawcorSCL21.65▼-0.421.03
     
    29.5017D   W
    Pason SystemsPSI21.75▼-1.016.05
     
    24.5793D   W
    Mullen Group MTL13.23▼-1.413.12
     
    16.9323D   W
    EnerflexEFX17.95▲0.613.55
     
    18.7297D   W
    Secure EnergySES8.05▼-1.16.98
     
    9.8261D   W
    REFINING & MARKETING
    Parkland FuelPKI37.99▼-2.724.97
     
    47.4587D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Apache (APA +2.5%)
  • Cimarex Energy (XEC +2.4%)
  • Williams Co (WMB +1.8%)
  • TechnipFMC (FTI +1.7%)
  • HollyFrontier (HFC +1.7%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • EQT Corp (EQT -5.8%)
  • Newfield Expl (NFX -4.7%)
  • Baker Hughes (BHGE -2.7%)
  • Cabot O&G (COG -2.5%)
  • Valero Energy (VLO -1.5%)
  • 12-MO LOWS
  • Halliburton (HAL 0%)
  • Baker Hughes (BHGE -2.7%)
  • EQT Corp (EQT -5.8%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM77.39▼-0.872.16
     
    89.3046D   W
    ChevronCVX115.72▲0.3107.54
     
    133.8845D   W
    MIDSTREAM
    Kinder MorganKMI16.94▼-1.414.69
     
    19.8362D   W
    Williams CoWMB24.75▲1.823.54
     
    33.6727D   W
    ONEOKOKE60.37▼-1.149.65
     
    71.9933D   W
    LARGE CAP E&P
    ConocoPhillipsCOP64.12▲0.648.97
     
    80.2431D   W
    EOG ResourcesEOG98.07▼-0.596.54
     
    133.538D   W
    Occidental PetroOXY70.95▲0.262.47
     
    87.6729D   W
    Anadarko PetroAPC54.40▼-1.046.80
     
    76.709D   W
    Concho ResCXO128.79▲1.0123.63
     
    163.1116D   W
    SERVICES
    SchlumbergerSLB47.81▲1.047.25
     
    80.353D   W
    HalliburtonHAL32.250.032.01
     
    57.862D   W
    Ntl-Oilwell VarcoNOV32.66▼-0.831.47
     
    49.084D   W
    TechnipFMCFTI23.94▲1.723.51
     
    35.004D   W
    Baker HughesBHGE23.15▼-2.722.55
     
    37.761D   W
    REFINERS
    Phillips 66PSX95.60▲0.889.14
     
    123.9714D   W
    Valero EnergyVLO82.34▼-1.580.00
     
    126.984D   W
    Marathon PetroMPC63.84▼-0.560.10
     
    88.459D   W
    HollyFrontierHFC61.85▲1.741.70
     
    83.2829D   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.A61.34▲1.060.53
     
    73.8612D   W
    TotalTOT55.96▲2.053.37
     
    65.6928D   W
    BPBP40.33▲1.336.15
     
    47.8331D   W
    EniE33.78▲0.432.13
     
    40.1532D   W
    EquinorEQNR23.97▲1.719.76
     
    28.9326D   W
    ANALYST RATINGS

    UPGRADES

    • CES Energy Solutions (CEU.TO): Upgraded from Buy to Action List Buy at TD Securities.

    • CNOOC (CEO): Upgraded from Neutral to Outperform at Macquarie.

    • EQT GP (EQGP): Upgraded from Hold to Overweight at US Capital Advisors.

    • Pioneer Natural Resources (PXD): Upgraded from Outperform to Strong Buy at Ifs Securities.

    DOWNGRADES

    • EQT (EQT): Downgraded from Equal Weight to Underweight at Morgan Stanley.


    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.
    Oil prices post second day of gains despite bearish headwinds

    Oil prices post second day of gains despite bearish headwinds

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

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

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