Oil prices post second day of gains despite bearish headwinds

Oil prices post second day of gains despite bearish headwinds

Today's energy market summary:

  • Despite a slew of bearish headlines, oil prices managed to eke out a second day of gains. Brent rose almost 1%, while WTI gained 0.4%.

  • Canadian crude benchmarks also posted gains for the day, with WCS and Canadian Light rising 1.6% and 1.0%, respectively.

  • Edmonton Condensate (C5+) prices rose 1.4%, ending Thursday at just under US$39.

  • The US Energy Information Administration reported another 10 million barrel build in US inventories, its 8th weekly increase, and another record high in US output, rising to 11.7 million bbl/day last week.

  • According to Reuters, Russia says they want no part in any OPEC-led deal to cut output next year. Government officials say production is expected to keep rising by about 100,000 bbl/day annually. The country produced a record 11.4 million bbl/day in October.

  • After surging 18% yesterday, Henry Hub natural gas prices sank 16.5%, blamed mostly on profit taking.

  • Equity markets in the US and China posted nice gains on Thursday, as both countries appear to be making progress on trade negotiations. 

  • The S&P 500 rose over 1%, led higher by offensive sectors, including energy which rallied 1.5%. All large-cap energy components on the SPX ended the day in the positive.

  • In Toronto, the TSX was roughly unchanged on Thursday. The energy sector posted a 0.3% loss, led lower by the energy services subsector.

Today's notable energy news:

  • Obsidian Energy (OBE.TO +2.9%) set a 2019 capital program of $120 million, with an option to add another $40 million for two additional rigs in the Cardium. The company expects to produce 28,000 to 29,000 boe/day next year.

  • Anadarko Petroleum (APC +2.0%) announced a 2019 capital investment program of US$4.3 to US$4.7 billion, while production is expected to rise about 10% to as much as 435,000 boe/day. The company also increased its share buyback program by another US$1 billion and raised its quarterly dividend 20% to US$0.30 per share.

  • FERC has released its draft EIA report on Kinder Morgan's (KMI +1.4%) proposed Gulf LNG export terminal in Mississippi, recommending approval of the project. Gulf LNG includes the Gulf LNG pipeline and two liquefaction trains, each with a capacity of 5.75 million t/y. The report now goes to FERC commissioners for a final decision.

  • Williams Co (WMB +1.0%) and Brazos Midstream have agreed to form a joint-venture in the Delaware Basin. Williams will contribute their existing assets in the region, in exchange for a 15% stake in the JV. Brazos Midstream is backed by investment firm Morgan Stanley. Financial terms of the deal were not disclosed.

  • Pioneer Natural Resources (PXD +2.8%) announced the closure of its sand mine in Brady, Texas, sometime in Q1/2019. The company expects to book a write-down of about US$400 million in Q4/2018.

Today's M&A activity:

  • American Midstream Partners (AMID +0.5%) has agreed to sell its refined products terminalling business to Sunoco LP (SUN n/c) for US$125 million in cash.

  • Oilfield service firms Tidewater (TDW +5.1%) and GulfMark Offshore (GLF +6.2%) shareholders have voted overwhelmingly in favour of a US$1.25 billion all-stock merger between the two companies, allowing the transaction to close on Thursday. The new company will retain the Tidewater name and ticker symbol. Both companies filed for bankruptcy in the spring of 2017.

  • Equinor (EQNR +1.6%) announced the purchase of a 10% stake in Scatec Solar for US$82 million.

Today's third quarter earnings:

  • Teekay Tankers (TNK +6.6%) posted a third quarter loss of US$17.5 million, narrower than a US$22 million dollar loss reported the same time last year. Revenues almost doubled to US$176 million.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$66.62▲0.861.22
 
86.29
WTI$56.46▲0.455.14
 
76.41
CDN LT$21.54▲1.020.83
 
69.32
C5+$38.97▲1.437.76
 
71.40
WCS$13.53▲1.612.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ NOV 15   █ NOV 8   █ NOV 1   █ OCT 25   (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
  • Baytex Energy (BTE +6.1%)
  • CES Energy (CEU +3.9%)
  • Enerplus (ERF +3.5%)
  • Ensign Energy Svcs (ESI +3.1%)
  • Kelt Exploration (KEL +2.5%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Enerflex (EFX -4%)
  • Trican Well Svc (TCW -3%)
  • Advantage O&G (AAV -2.4%)
  • Whitecap Res (WCP -2.3%)
  • Tourmaline (TOU -2.2%)
  • 12-MO LOWS
  • Encana (ECA -0.6%)
  • Mullen Group (MTL -1.2%)
  • Crescent Point (CPG +1.2%)
  • Freehold Royalties (FRU -0.3%)
  • PrairieSky (PSK +0.9%)
  • Trican Well Svc (TCW -3%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU44.17▼-0.240.49
     
    55.4726D   W
    Imperial OilIMO42.04▲1.233.43
     
    44.9178D   W
    Husky EnergyHSE17.85▲0.515.09
     
    22.9928D   W
    MIDSTREAM
    EnbridgeENB42.55▼-0.137.36
     
    51.0480D   W
    TransCanadaTRP52.41▲0.748.92
     
    65.1862D   W
    Pembina PipelinePPL44.30▲0.837.60
     
    47.8478D   W
    Inter PipelineIPL22.79▼0.020.68
     
    27.9272D   W
    Keyera KEY29.42▲1.528.45
     
    38.9120↑D   W
    Gibson EnergyGEI21.90▼-2.115.68
     
    23.3297D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.75▼-1.735.31
     
    49.0818D   W
    EncanaECA10.22▼-0.610.06
     
    18.544D   W
    Cenovus EnergyCVE10.94▲1.59.03
     
    14.8421D   W
    TourmalineTOU19.43▼-2.217.78
     
    26.1922D   W
    Seven GenerationsVII12.10▲0.611.57
     
    19.409D   W
    SERVICES
    ShawcorSCL21.20▼-1.421.03
     
    29.5017D   W
    Pason SystemsPSI21.45▼-1.416.05
     
    24.5791D   W
    Mullen Group MTL13.07▼-1.213.02
     
    16.9321D   W
    EnerflexEFX17.24▼-4.013.55
     
    18.7293D   W
    Secure EnergySES8.12▲0.96.98
     
    9.8263D   W
    REFINING & MARKETING
    Parkland FuelPKI37.53▼-1.224.97
     
    47.4583↓D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Concho Res (CXO +4.5%)
  • EOG Resources (EOG +3.6%)
  • Noble Energy (NBL +3.2%)
  • Helmerich & Payne (HP +3%)
  • Marathon Oil (MRO +2.8%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • EQT Corp (EQT -1.8%)
  • Cabot O&G (COG -0.7%)
  • 12-MO LOWS
  • Schlumberger (SLB +0.6%)
  • Halliburton (HAL +0.7%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM78.19▲1.072.16
     
    89.3045D   W
    ChevronCVX116.95▲2.1107.54
     
    133.8848D   W
    MIDSTREAM
    Kinder MorganKMI17.17▲1.414.69
     
    19.8364D   W
    Williams CoWMB25.00▲1.023.54
     
    33.6727D   W
    ONEOKOKE61.36▲1.749.65
     
    71.9935D   W
    LARGE CAP E&P
    ConocoPhillipsCOP65.21▲1.748.97
     
    80.2431D   W
    EOG ResourcesEOG101.59▲3.696.54
     
    133.5311D   W
    Occidental PetroOXY72.59▲2.362.47
     
    87.6734D   W
    Anadarko PetroAPC55.51▲2.046.80
     
    76.709D   W
    Concho ResCXO134.59▲4.5123.63
     
    163.1126D   W
    SERVICES
    SchlumbergerSLB48.08▲0.647.07
     
    80.353D   W
    HalliburtonHAL32.45▲0.731.75
     
    57.862D   W
    Ntl-Oilwell VarcoNOV33.50▲2.631.47
     
    49.085D   W
    TechnipFMCFTI24.11▲0.723.51
     
    35.004D   W
    Baker HughesBHGE23.28▲0.622.55
     
    37.762D   W
    REFINERS
    Phillips 66PSX96.23▲0.789.14
     
    123.9713D   W
    Valero EnergyVLO83.27▲1.280.00
     
    126.983D   W
    Marathon PetroMPC65.36▲2.460.10
     
    88.4512D   W
    HollyFrontierHFC63.09▲2.042.10
     
    83.2828D   W
    NYSE ADRs
    ADRs BULLISH INDICATORS
    12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • ADRs BEARISH INDICATORS
    12-MO LOWS
  • Royal Dutch Shell (RDS.A +0.5%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A61.66▲0.560.27
     
    73.8613D   W
    TotalTOT57.13▲2.153.37
     
    65.6934D   W
    BPBP41.16▲2.136.15
     
    47.8334D   W
    EniE34.15▲1.032.13
     
    40.1535D   W
    EquinorEQNR24.36▲1.619.76
     
    28.9329D   W
    ANALYST RATINGS

    UPGRADES

    • Oasis Petroleum (OAS): Upgraded from Overweight to Buy at Barclays.

    DOWNGRADES

    • Cabot Oil & Gas (COG): Downgraded from Buy to Hold at Tudor Pickering.

    • PetroChina (PTR): Downgraded from Overweight to Equal Weight 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.
    WCS surges 50% as December contract expires

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

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