Energy stocks tumble to new lows as oil prices take another beating
Today's energy market summary:
Oil prices suffered their biggest one-day loss in more than 3 years, with both Brent and WTI tumbling over 7% and returning to the lows of October 2017. The crude volatility index also spiked back to the highs of 2016.
The discount on Canadian Light narrowed by US$1.75 a barrel while the WCS discount shrunk by over US$3. Despite the improvement, both benchmarks ended the day lower due to lower WTI prices.
US equity markets resumed their downtrend on Friday, with most major indices posting a 0.7% loss. In Toronto, the TSX declined 0.5%, led lower by falling commodity prices.
Energy was once again the worst performing sector on both sides of the border, falling almost 5% on the TSX and 3.3% on the S&P 500. Almost every energy component posted a loss, except for Parkland Fuel (PKI.TO +0.1%) and EQT Corp (EQT +1.8%). Non-integrated producers were the worst hit, including Cenovus Energy (CVE.TO -8.3%), Canadian Natural Resources (CNQ.TO -6.2%) and Seven Generations (VII.TO -6.7%). Many names sank to new multi-year lows in both Canadian and US markets.
European ADRs also posted heavy losses due to lower Brent prices and a stronger US dollar.
Today's notable energy news:
BP (BP -3.3%) announced the start of production at its Clair Ridge project in the UK North Sea, located in the West of Shetland region. Clair Ridge has a peak production capacity of 120,000 bbl/day and is jointly owned with Royal Dutch Shell (RDS.A -4.3%), Chevron (CVX -3.4%) and ConocoPhillips (COP -2.6%).
Total (TOT -4.6%) announced the acquisition of fuel distribution and retail outlets from Brazilian company Grupo Zema. The deal gives Total 280 gas stations and storage facilities in the South American country. The company says it plans to double the number of retail locations over the next 5 years. Financial terms of the deal were not disclosed.
A French trade union is calling for a shutdown of three Total refineries in France on Monday. The union says they will meet with company management on Saturday to try to reach an agreement. The three refineries have a combined capacity of about 575,000 bbl/day.
|CURRENCIES & YIELDS|
|Suncor Energy||SU||43.05||▼-4.1||40.49||55.47||27||D W|
|Imperial Oil||IMO||39.58||▼-1.9||33.43||44.91||47||D W|
|Husky Energy||HSE||15.35||▼-4.5||15.09||22.99||13||D W|
|Pembina Pipeline||PPL||43.75||▼-0.4||37.60||47.84||80||D W|
|Inter Pipeline||IPL||21.92||▼-0.7||20.68||27.92||53||D W|
|Gibson Energy||GEI||21.11||▼-1.6||15.68||23.32||97||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||33.59||▼-6.2||33.00||49.08||13||D W|
|Cenovus Energy||CVE||9.25||▼-8.3||9.03||14.84||7||D W|
|Seven Generations||VII||11.07||▼-6.7||10.89||19.40||6||D W|
|Pason Systems||PSI||21.15||▼-2.0||16.05||24.57||91||D W|
|Mullen Group||MTL||12.67||▼-3.6||12.54||16.93||21||D W|
|Secure Energy||SES||7.78||▼-3.4||6.98||9.82||61||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||37.84||▲0.1||25.02||47.45||93||D W|
|Exxon Mobil||XOM||75.49||▼-2.7||72.16||89.30||47||D W|
|Kinder Morgan||KMI||16.61||▼-3.3||14.69||19.83||61||D W|
|Williams Co||WMB||24.54||▼-2.0||23.54||33.67||36||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||100.70||▼-5.0||96.54||133.53||20||D W|
|Occidental Petro||OXY||69.83||▼-3.1||62.47||87.67||32||D W|
|Anadarko Petro||APC||51.62||▼-3.6||46.80||76.70||7||D W|
|Concho Res||CXO||126.96||▼-6.3||123.63||163.11||26||D W|
|Ntl-Oilwell Varco||NOV||31.62||▼-2.9||31.30||49.08||6||D W|
|Baker Hughes||BHGE||22.46||▼-0.3||21.67||37.76||2||D W|
|Phillips 66||PSX||89.00||▼-4.9||88.99||123.97||8||D W|
|Valero Energy||VLO||77.03||▼-2.7||77.00||126.98||3||D W|
|Marathon Petro||MPC||61.73||▼-3.1||60.64||88.45||10||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.