Energy stocks rally as stockpiles drop in Cushing and Baker Hughes reports decline in US rig counts
Today's energy market summary:
According to the US Energy Information Administration (EIA), commercial crude oil stockpiles rose another 4.9 million barrels last week, the ninth consecutive weekly build. Refinery runs in the Midwest have finally started to recover after a heavy maintenance turnaround season, bringing stockpiles lower in Cushing for the first time in over two months.
According to Baker Hughes, three oil rigs were pulled out of service this week in the US, the first reduction in three weeks.
Gasoline prices rose 1%, as the EIA reported a 1.3 million barrel drawdown in gasoline stockpiles.
AECO gas prices rose over 15%, while Henry Hub declined 1.6%.
After yesterday's steep declines, North American markets tried to rally on Tuesday, but fizzled at the end of the day on light trading volumes. The S&P 500 rose 0.3%, while the Nasdaq added 0.6%. The Dow gave back all gains, ending the day unchanged. US markets are closed on Thursday for Thanksgiving, but re-open on Friday for a few hours, ending the trading week at 1:00 pm ET.
In Toronto, the TSX rose 1.5%, with gains seen across all sectors.
Energy was the best performing sector on both sides of the border, rising 2.4% on the TSX and 1.6% on the SPX. Most TSX energy names posted gains for the day, except for a handful of midstream stocks. Most large-cap SPX energy components ended the day higher.
Today's notable energy news:
AltaGas (ALA.TO +0.6%) announced the appointment of a new CEO, Randy Crawford, effective December 10, 2018. Crawford last served as a senior executive at EQT Corp (EQT +6.5%), taking over for David Harris, who was dismissed in July for unspecified reasons.
Parkland Fuel (PKI.TO +2.7%) has closed on the private placement of $300 million in senior unsecured notes due in 2027, at an interest rate of 6.50%.
Chevron (CVX +1.3%) announced the start of production at its Big Foot deepwater project, located in the US Gulf of Mexico, about 360 km south of New Orleans. Big Foot has a design capacity of 75,000 bbl/day of oil and 25 MMcf/day of natural gas.
Royal Dutch Shell (RDS.A +2.8%) has agreed to sell its 26.6% stake in the Greater Sunrise gas field to the government of East Timor for US$300 million. The field straddles the maritime border between Australia and East Timor. Development has been delayed for decades due to territorial disputes between the two countries.
|CURRENCIES & YIELDS|
|Suncor Energy||SU||44.50||▲3.5||40.49||55.47||33||D W|
|Imperial Oil||IMO||40.29||▲1.5||33.43||44.91||56||D W|
|Husky Energy||HSE||16.35||▲2.6||15.09||22.99||16||D W|
|Pembina Pipeline||PPL||44.22||▼-0.6||37.60||47.84||82||D W|
|Inter Pipeline||IPL||22.09||▼-1.3||20.68||27.92||57||D W|
|Gibson Energy||GEI||21.34||▼-1.5||15.68||23.32||97||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||35.63||▲1.7||34.75||49.08||19||D W|
|Cenovus Energy||CVE||10.13||▲1.9||9.03||14.84||12||D W|
|Seven Generations||VII||11.80||▲1.5||11.51||19.40||8||D W|
|Pason Systems||PSI||21.53||▲0.6||16.05||24.57||94||D W|
|Mullen Group||MTL||13.21||▲0.2||13.01||16.93||25||D W|
|Secure Energy||SES||8.09||▲1.1||6.98||9.82||80||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||38.19||▲2.7||25.02||47.45||92||D W|
|Exxon Mobil||XOM||77.56||▲0.8||72.16||89.30||55||D W|
|Kinder Morgan||KMI||17.17||▲1.2||14.69||19.83||76||D W|
|Williams Co||WMB||25.03||▲1.5||23.54||33.67||40||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||106.00||▲3.6||96.54||133.53||39||D W|
|Occidental Petro||OXY||72.08||▲2.5||62.47||87.67||43||D W|
|Anadarko Petro||APC||53.57||▲2.3||46.80||76.70||9||D W|
|Concho Res||CXO||135.51||▲1.2||123.63||163.11||49||D W|
|Ntl-Oilwell Varco||NOV||32.55||▲2.3||31.48||49.08||7||D W|
|Baker Hughes||BHGE||22.52||▲0.5||21.90||37.76||2||D W|
|Phillips 66||PSX||93.65||▲1.2||89.14||123.97||17||D W|
|Valero Energy||VLO||79.20||▲0.8||78.00||126.98||4||D W|
|Marathon Petro||MPC||63.73||▲3.0||60.64||88.45||15||D W|
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.