Oil prices rebound from highly oversold conditions

Oil prices rebound from highly oversold conditions

Today's energy market summary:

  • Oil prices rebounded from highly oversold conditions on Monday, with Brent rising almost 3% and WTI gaining 2.4%.

  • Canadian Light rose almost 4% while Edmonton Condensate (C5+) gained 3.3%. Western Canadian Select (WCS) was roughly unchanged due to a slight widening of the discount to WTI.

  • Wholesale gasoline prices also rallied, gaining 3.4%.

  • Saudi Arabian production reached a record 11.2 million bbl/day in November. Markets are currently undecided on whether OPEC and Russia will commit to sizeable production cuts at their meeting in Vienna next week.

Today's equity market action:

  • After last week's carnage, US stock markets mostly ended Monday higher. The Nasdaq gained 2%, while the S&P 500 and Dow Industrial both rose about 1.5%. Gains were led by discretionary and technology stocks, two of the worst hit sectors in the past few weeks.

  • European markets also had a good day, on optimism over the Brexit deal and possible budget concessions from the Italian government. 

  • In Toronto, the TSX was unchanged. Cannabis and natural resources stocks led to the downside.

  • In energy markets, the SPX energy basket rose almost 2%, with gains seen across all subsectors. 

  • Canadian energy declined 0.3%. TSX midstream names were the worst performers, while a number of smaller cap producers hit fresh multi-year lows on Monday.

  • European ADRs mostly posted gains, despite a small increase in the US dollar.

Today's notable energy news:

  • Gibson Energy (GEI.TO +0.3%) announced the sale of its non-core Environmental Services North and Wholesale Propane businesses for about $100 million. The company says it is on track to divest its remaining trucking business by the middle of next year. All proceeds will be reinvested into Gibson's tankage and pipeline infrastructure projects.

  • North American Construction Group (NOA.TO -0.3%) closed on its $199 million purchase of various mining assets and contracts from Aecon Group (ARE.TO +0.5%), and also secured an upsized $300 million credit facility from a consortium led by National Bank.

  • China National Petroleum (CNPC) has officially replaced Total (TOT +1.4%) as operator of Iran's South Pars gas project. Total suspended its operations in the field after it failed to secure a waiver from US sanctions. CNPC holds a 30% stake in project, said to be the world's largest natural gas field.

  • Dominion Energy (D +1.2%) has finalized a deal to acquire all outstanding shares of Dominion Energy Midstream (DM +0.8%), boosting its all-stock offer by 1%.

  • Occidental Petroleum (OXY 1.2%) purchased a 50% stake in several Columbian exploration blocks from UK-based Amerisur Resources (AMER.L +14.7%). The company has promised to invest US$93 million in exploration starting next year.

  • Total (TOT +1.4%) began winding down operations at its 253,000 bbl/day Gonfreville refinery in Normandy due to ongoing strike action from a French trade union.

  • KBR (KBR +3.7%) secured a new contract from the government of Papua New Guinea to provide ongoing consulting and engineering services for new and existing oil and gas projects in the country.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$60.48▲2.958.80
 
86.29
WTI$51.63▲2.450.42
 
76.41
CDN LT$26.38▲4.820.83
 
69.32
C5+$38.38▲3.337.17
 
71.40
WCS$17.88▼0.212.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ NOV 26   █ NOV 19   █ NOV 12   █ NOV 5   (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
  • TORC O&G (TOG +3.5%)
  • Husky Energy (HSE +3%)
  • Trican Well Svc (TCW +1.6%)
  • Imperial Oil (IMO +1.2%)
  • Crescent Point (CPG +0.5%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Altagas (ALA -7.9%)
  • ARC Resources (ARX -4.8%)
  • Birchcliff Energy (BIR -4.6%)
  • Seven Generations (VII -3.7%)
  • Shawcor (SCL -3.7%)
  • 12-MO LOWS
  • Keyera (KEY -2.9%)
  • Encana (ECA -1.5%)
  • Seven Generations (VII -3.7%)
  • Shawcor (SCL -3.7%)
  • Advantage O&G (AAV -2.8%)
  • ARC Resources (ARX -4.8%)
  • Nuvista Energy (NVA -2.5%)
  • Paramount Res (POU -3.6%)
  • Whitecap Res (WCP -2%)
  • 10-YR LOWS
  • Seven Generations (VII -3.7%)
  • ARC Resources (ARX -4.8%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU43.15▲0.240.49
     
    55.4726D   W
    Imperial OilIMO40.04▲1.233.43
     
    44.9149D   W
    Husky EnergyHSE15.81▲3.015.09
     
    22.9918D   W
    MIDSTREAM
    EnbridgeENB42.81▼-1.437.36
     
    51.0489D   W
    TransCanadaTRP53.12▼-0.848.92
     
    64.3478D   W
    Pembina PipelinePPL43.65▼-0.237.60
     
    47.8477D   W
    Inter PipelineIPL21.75▼-0.820.68
     
    27.9241D   W
    Keyera KEY27.95▼-2.927.87
     
    38.9115D   W
    Gibson EnergyGEI21.18▲0.315.68
     
    23.3296D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ33.74▲0.533.00
     
    49.0814D   W
    EncanaECA9.31▼-1.59.28
     
    18.543D   W
    Cenovus EnergyCVE9.29▲0.49.03
     
    14.847D   W
    TourmalineTOU19.25▼-3.717.78
     
    26.1923D   W
    Seven GenerationsVII10.66▼-3.710.49
     
    19.405D   W
    SERVICES
    ShawcorSCL19.56▼-3.719.36
     
    29.5010D   W
    Pason SystemsPSI20.97▼-0.916.05
     
    24.5791D   W
    Mullen Group MTL12.56▼-0.912.54
     
    16.9319D   W
    EnerflexEFX16.84▲0.113.55
     
    18.7294D   W
    Secure EnergySES7.81▲0.46.98
     
    9.8263D   W
    REFINING & MARKETING
    Parkland FuelPKI37.21▼-1.725.02
     
    47.4588D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • HollyFrontier (HFC +5.7%)
  • TechnipFMC (FTI +5.3%)
  • Marathon Petro (MPC +4%)
  • Marathon Oil (MRO +3.7%)
  • Halliburton (HAL +3.6%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Cabot O&G (COG -2.4%)
  • Newfield Expl (NFX -1.4%)
  • Hess Corp (HES -1%)
  • 12-MO LOWS
  • Devon Energy (DVN +0.9%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM76.98▲2.072.16
     
    89.3044D   W
    ChevronCVX114.98▲1.2107.54
     
    133.8846D   W
    MIDSTREAM
    Kinder MorganKMI16.72▲0.714.69
     
    19.8354D   W
    Williams CoWMB24.81▲1.123.54
     
    33.6733D   W
    ONEOKOKE59.53▲0.749.65
     
    71.9924↓D   W
    LARGE CAP E&P
    ConocoPhillipsCOP64.70▲1.448.97
     
    80.2438D   W
    EOG ResourcesEOG102.54▲1.896.54
     
    133.5318D   W
    Occidental PetroOXY70.64▲1.262.47
     
    87.6728D   W
    Anadarko PetroAPC52.37▲1.546.80
     
    76.706D   W
    Concho ResCXO128.78▲1.4123.63
     
    163.1122D   W
    SERVICES
    SchlumbergerSLB46.63▲0.445.80
     
    80.352D   W
    HalliburtonHAL31.80▲3.630.47
     
    57.862D   W
    Ntl-Oilwell VarcoNOV32.19▲1.831.30
     
    49.086D   W
    TechnipFMCFTI23.82▲5.322.39
     
    35.007D   W
    Baker HughesBHGE22.66▲0.921.67
     
    37.761D   W
    REFINERS
    Phillips 66PSX92.07▲3.588.99
     
    123.979D   W
    Valero EnergyVLO78.78▲2.277.00
     
    126.983D   W
    Marathon PetroMPC64.18▲4.060.64
     
    88.4512D   W
    HollyFrontierHFC60.44▲5.742.42
     
    83.2819D   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.A60.35▲2.458.55
     
    73.8610D   W
    TotalTOT54.75▲1.753.37
     
    65.6927D   W
    BPBP40.53▲1.636.15
     
    47.8338D   W
    EniE32.35▲1.231.72
     
    40.1521D   W
    EquinorEQNR23.05▲0.719.91
     
    28.9320D   W
    ANALYST RATINGS

    UPGRADES

    • ExxonMobil (XOM): Upgraded from Market Perform to Outperform at Wolfe Research.

    • Plains All American Pipeline (PAA): Upgraded from Underperform to Hold at Wolfe Research.

    • Plains GP (PAGP): Upgraded from Underperform to Hold at Wolfe Research.

    • Petrobras (PBR): Upgraded from Market Perform to Outperform at UBS Group.

    • Schlumberger (SLB): Upgraded from Hold to Buy at HSBC.

    • TechnipFMC (FTI): Upgraded from Reduce to Hold at HSBC.

    DOWNGRADES

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

    • Kinder Morgan (KMI): Downgraded from Market Perform to Underperform at Wolfe Research.

    • Wildhorse Resource Development (WRD): Downgraded from Outperform to Market Perform at Wells Fargo.


    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.
    Canadian energy stocks sink lower, closing in on January 2016 lows

    Canadian energy stocks sink lower, closing in on January 2016 lows

    Energy stocks tumble to new lows as oil prices take another beating

    Energy stocks tumble to new lows as oil prices take another beating

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