Falling stock markets drag oil prices lower, as WTI erases all gains for the year

Falling stock markets drag oil prices lower, as WTI erases all gains for the year

Today's energy market summary:

  • Oil prices took another beating on Tuesday, as the recent sell-off in global markets continues. Both Brent and WTI declined 6%, with the US benchmark ending the day at a 1-year low. The Canadian light and heavy benchmarks both fell over 11%.

  • The WCS discount to WTI narrowed by US$1/bbl, after Alberta Premier Rachel Notley announced plans to develop "short and medium-term solutions" to narrow the price gap. The province is also leaving the door open to government-mandated production cuts.

  • Gasoline, heating oil and natural gas also participated in the meltdown. Wholesale gasoline prices fell another 6%, now down 30% from the highs of early October. Heating oil sank another 4.6%, posting a 20% loss in the past two months.

  • According to the American Petroleum Institute (API), crude stockpiles are expected to have declined 1.55 million barrels last week. Official numbers from the Energy Information Administration (EIA) are due on Wednesday morning. The EIA has so far reported 8 consecutive weeks of inventory builds.

  • The Dow Jones Industrial was the biggest loser in US equity markets on Tuesday, falling over 550 points or 2.2%. The S&P 500 declined 1.8%. Most US indices have now wiping out all gains for the year. The TSX touched a 2-year low, falling 1.3%.

  • Energy was once again the worst performing sector on both sides of the border, falling 2.9% on the TSX and 3.3% on the S&P 500. Declines were broadly based across all subsectors. Foreign ADRs listed on the NYSE also ended the day lower.

  • The US dollar was the only bright spot on Tuesday, gaining 0.7%. The loonie sank 1%, returning to the lows of last June.

Today's notable energy news:

  • Husky Energy (HSE.TO -5.6%) is continuing its investigation into last Friday's spill at its White Rose platform off the coast of Newfoundland. The facility was producing 20,000 bbl/day (net to Husky), prior to the shutdown on November 15. The company has not yet provided a timeline for restart.

  • Minnesota state regulators have rejected a motion to reconsider their approval of Enbridge's (ENB.TO +0.3%) plan to replace Line 3, and stood behind their certificate of need, awarded last June.

  • TransCanada (TRP.TO +1.1%) has stopped construction of two natural gas pipelines in central Mexico due to numerous delays, runaway permit costs and allegations of extortion. The company says it is re-evaluating routings for the two projects.

  • Royal Dutch Shell's (RDS.A -2.8%) 210,000 bbl/day Convent refinery in Louisiana may be shutdown for as long two months, after a hot spot was discovered in a hydrocracker unit. A 40-day maintenance turnaround, originally planned for next June, has now been advanced in order to repair the unit.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$62.53▼6.461.22
 
86.29
WTI$53.43▼5.953.43
 
76.41
CDN LT$26.43▼11.220.83
 
69.32
C5+$39.93▼7.737.76
 
71.40
WCS$17.58▼11.712.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ NOV 20   █ NOV 13   █ NOV 6   █ OCT 30   (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
  • TransCanada (TRP +1.1%)
  • Parkland Fuel (PKI +1%)
  • PrairieSky (PSK +0.5%)
  • Enbridge (ENB +0.3%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • MEG Energy (MEG -10.2%)
  • Baytex Energy (BTE -8.5%)
  • Whitecap Res (WCP -8.3%)
  • Crescent Point (CPG -8.1%)
  • Encana (ECA -6.8%)
  • 12-MO LOWS
  • Cdn Natural Res (CNQ -2.3%)
  • Encana (ECA -6.8%)
  • Seven Generations (VII -2.9%)
  • Shawcor (SCL -2.8%)
  • Mullen Group (MTL -0.2%)
  • Crescent Point (CPG -8.1%)
  • Whitecap Res (WCP -8.3%)
  • 10-YR LOWS
  • Crescent Point (CPG -8.1%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU42.98▼-0.540.49
     
    55.4726D   W
    Imperial OilIMO39.69▼-4.433.43
     
    44.9149D   W
    Husky EnergyHSE15.93▼-5.615.09
     
    22.9914D   W
    MIDSTREAM
    EnbridgeENB43.94▲0.337.36
     
    51.0493D   W
    TransCanadaTRP53.81▲1.148.92
     
    65.1885D   W
    Pembina PipelinePPL44.68▼-0.337.60
     
    47.8485↑D   W
    Inter PipelineIPL22.52▼-1.120.68
     
    27.9265D   W
    Keyera KEY29.39▼-0.428.45
     
    38.9123D   W
    Gibson EnergyGEI21.66▼-1.815.68
     
    23.3298D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.04▼-2.334.75
     
    49.0818D   W
    EncanaECA9.37▼-6.89.30
     
    18.543D   W
    Cenovus EnergyCVE9.94▼-6.29.03
     
    14.8412D   W
    TourmalineTOU19.61▼-2.017.78
     
    26.1929D   W
    Seven GenerationsVII11.63▼-2.911.51
     
    19.408D   W
    SERVICES
    ShawcorSCL20.90▼-2.820.77
     
    29.5018D   W
    Pason SystemsPSI21.41▼-2.016.05
     
    24.5793D   W
    Mullen Group MTL13.18▼-0.213.01
     
    16.9327D   W
    EnerflexEFX17.33▼-1.813.55
     
    18.7295D   W
    Secure EnergySES8.00▼-3.46.98
     
    9.8268D   W
    REFINING & MARKETING
    Parkland FuelPKI37.29▲1.025.02
     
    47.4588D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • None
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • Cabot O&G (COG -2%)
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Newfield Expl (NFX -8.6%)
  • Devon Energy (DVN -7.3%)
  • Marathon Oil (MRO -7%)
  • Anadarko Petro (APC -5.9%)
  • Helmerich & Payne (HP -5.6%)
  • 12-MO LOWS
  • Schlumberger (SLB -2.9%)
  • Halliburton (HAL -4.7%)
  • TechnipFMC (FTI -4.7%)
  • Baker Hughes (BHGE -2.5%)
  • Valero Energy (VLO -2.6%)
  • Marathon Petro (MPC -2.4%)
  • Devon Energy (DVN -7.3%)
  • Noble Energy (NBL -4.9%)
  • Newfield Expl (NFX -8.6%)
  • 10-YR LOWS
  • Baker Hughes (BHGE -2.5%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM76.97▼-2.872.16
     
    89.3054D   W
    ChevronCVX116.10▼-2.8107.54
     
    133.8859D   W
    MIDSTREAM
    Kinder MorganKMI16.96▼-2.614.69
     
    19.8372D   W
    Williams CoWMB24.65▼-2.823.54
     
    33.6739D   W
    ONEOKOKE60.34▼-3.149.65
     
    71.9943D   W
    LARGE CAP E&P
    ConocoPhillipsCOP63.99▼-3.748.97
     
    80.2445D   W
    EOG ResourcesEOG102.36▼-3.296.54
     
    133.5327D   W
    Occidental PetroOXY70.30▼-4.262.47
     
    87.6737D   W
    Anadarko PetroAPC52.35▼-5.946.80
     
    76.708D   W
    Concho ResCXO133.87▼-3.7123.63
     
    163.1148D   W
    SERVICES
    SchlumbergerSLB46.90▼-2.946.34
     
    80.354D   W
    HalliburtonHAL31.44▼-4.731.14
     
    57.863D   W
    Ntl-Oilwell VarcoNOV31.82▼-3.031.48
     
    49.086D   W
    TechnipFMCFTI23.12▼-4.722.90
     
    35.006D   W
    Baker HughesBHGE22.41▼-2.521.90
     
    37.763D   W
    REFINERS
    Phillips 66PSX92.54▼-2.589.14
     
    123.9717D   W
    Valero EnergyVLO78.61▼-2.678.00
     
    126.984D   W
    Marathon PetroMPC61.89▼-2.460.64
     
    88.4511D   W
    HollyFrontierHFC59.25▼-4.942.42
     
    83.2822D   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 -2.8%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A59.96▼-2.859.64
     
    73.8612D   W
    TotalTOT55.28▼-2.653.37
     
    65.6941D   W
    BPBP40.10▼-2.036.15
     
    47.8344D   W
    EniE32.68▼-3.032.13
     
    40.1534D   W
    EquinorEQNR23.25▼-4.619.76
     
    28.9334D   W
    ANALYST RATINGS

    UPGRADES

    • BP (BP): Upgraded from Market Perform to Outperform at Raymond James.

    • EQM Midstream Partners (EQM): Upgraded from Peer Perform to Outperform at Wolfe Research.

    • EQT (EQT): Upgraded from Neutral to Buy at Goldman Sachs.

    DOWNGRADES

    • Cabot Oil & Gas (COG): Downgraded from Buy to Neutral at Goldman Sachs.

    • ExxonMobil (XOM): Downgraded from Market Perform to Underperform at Raymond James.


    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.
    Energy stocks rally as stockpiles drop in Cushing and Baker Hughes reports decline in US rig counts

    Energy stocks rally as stockpiles drop in Cushing and Baker Hughes reports decline in US rig counts

    Canadian energy stocks try to find a floor as oil prices stabilize

    Canadian energy stocks try to find a floor as oil prices stabilize

    0