Oil prices continue downtrend as API predicts another build in US crude stockpiles

Oil prices continue downtrend as API predicts another build in US crude stockpiles

Today's energy market summary:

  • Both Brent and WTI took a 1.4% haircut today, as markets digest the reinstatement of Iranian sanctions and API reported another 8 million barrel build in US crude stockpiles. Official US inventory numbers from the EIA are due Wednesday morning.

  • Canadian Light was the worst hit today, falling almost 5% as the discount to WTI widened slightly.

  • US equity markets mostly posted gains on Tuesday, as investors await results from today's midterm election. The S&P 500 rose 0.6%, while the Dow gained 0.7%. Gains were broadly based across all subsectors.

  • In Toronto, the TSX rose 0.5%, with industrial stocks the only losing sector for the day.

  • The TSX/SPX energy sectors rose 0.6% and 0.3%, respectively, with Canadian midstream names posting the largest gains.

Today's notable energy news:

  • Imperial Oil (IMO.TO -0.1%) announced a positive final investment decision on its $2.6 billion Aspen in-situ project. The 75,000 bbl/day facility is expected to produce first oil in 2022. The news was released after the markets closed on Tuesday.

  • US federal regulators have granted Williams Co (WMB +0.1%) two more years to get approvals for its long-delayed Constitution natural gas pipeline from Pennsylvania to New York. WMB was denied a water quality permit in New York State, and since embarked on a legal challenge to get construction started. Constitution is co-owned with Cabot Oil & Gas (COG -0.5%), Duke Energy (DUK +0.9%) and AltaGas (ALA.TO +6.7%).

Today's third quarter earnings on the TSX:

  • Keyera Corp (KEY.TO +1.9%) reported adjusted net earnings of $160 million in the third quarter, up 16% y/y. Cash flow from operations declined 14% to $69.4 million. Gathering and throughput volumes were roughly unchanged at 1.48 Bcf/day of gas and 183,000 bbl/day of liquids (gross).

  • Gibson Energy (GEI.TO +2.1%) posted a net profit of $6.8 million in Q3, versus a $5.4 million loss for the same time last year. Revenues rose 65% to $2.1 billion.

  • Pipe manufacturer Shawcor (SCL.TO +2.2%) posted a net profit of $10.6 million, down 45% from the same quarter last year. Revenues dipped 11% y/y to $351 million, blamed in part on "unexpected negative supply chain and regulatory environment influences."

Today's US/global energy earnings:

  • Devon Energy (DVN -0.5%) posted net earnings of US$2.5 billion in Q3, including proceeds from various asset sales. Core earnings totalled US$324 million for the quarter while revenues rose 34% y/y to US$2.6 billion. Total production declined 1% to 522,000 boe/day, mainly due to divested natural gas assets.

  • Pioneer Natural Resources (PXD +0.2%) posted a 54% increase in Q3 revenues, rising to US$1.3 billion, as production rose 16% to 320,659 boe/day. Q3 profits rose to US$411 million, including a US$118 million impairment charge, versus a US$23 million loss for the same time last year.

  • Plains All American (PPA +1.7%) posted a net profit of US$710 million in Q3, versus a US$33 million profit for the same time last year. Revenues rose almost 50% to US$8.8 billion.

  • Third quarter revenues at Oasis Petroleum (OAS -3.2%) rose 79% y/y to US$547 million, as total production rose 29% y/y to 85,400 boe/day, weighted 77% liquids. Profits rose to US$62.3 million, up from a US$41.2 million loss for the same time last year.

  • Q3 profits at Petrobras (PBR -3.4%) rose to US$1.8 billion on revenues of US$24.9 billion. The Brazilian oil major averaged 2.5 million boe/day of total upstream production during the quarter, down about 5% y/y.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$72.13▼1.458.44
 
86.29
WTI$62.21▼1.452.18
 
76.41
CDN LT$27.34▼4.626.50
 
69.32
C5+$44.17▼2.843.64
 
71.40
WCS$18.50▼2.217.92
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ NOV 6   █ OCT 30   █ OCT 23   █ OCT 16   (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
  • Altagas (ALA +6.7%)
  • Advantage O&G (AAV +5.3%)
  • Parkland Fuel (PKI +4.3%)
  • Ensign Energy Svcs (ESI +2.6%)
  • Cenovus Energy (CVE +0.9%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Nuvista Energy (NVA -2.8%)
  • Baytex Energy (BTE -2.8%)
  • Gran Tierra (GTE -2.6%)
  • CES Energy (CEU -2.6%)
  • Kelt Exploration (KEL -2.6%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • Mullen Group (MTL -0.1%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    SuncorSU45.07▲1.040.49
     
    55.4724D   W
    Imperial OilIMO42.19▼-0.133.43
     
    44.9179D   W
    Husky EnergyHSE18.44▲0.415.09
     
    22.9934D   W
    MIDSTREAM
    EnbridgeENB43.43▲2.537.36
     
    51.0486D   W
    TransCanadaTRP51.94▲1.448.92
     
    65.1842D   W
    Pembina PipelinePPL45.55▲1.137.60
     
    47.8489D   W
    Inter PipelineIPL22.21▼-0.220.68
     
    27.9254D   W
    Keyera KEY33.75▲1.931.20
     
    38.9146D   W
    Gibson EnergyGEI22.22▲2.115.68
     
    23.0497D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ39.12▲1.935.31
     
    49.0828D   W
    EncanaECA11.42▼-1.611.03
     
    18.543D   W
    Cenovus EnergyCVE11.90▲0.99.03
     
    14.8429D   W
    TourmalineTOU19.90▼-0.217.78
     
    27.2617D   W
    Seven GenerationsVII13.89▼-0.912.82
     
    21.2515D   W
    SERVICES
    ShawcorSCL24.26▲2.223.04
     
    29.5041D   W
    Pason SystemsPSI19.69▼-0.916.05
     
    22.1057D   W
    Mullen Group MTL13.78▼-0.113.43
     
    16.9521D   W
    EnerflexEFX16.49▲0.213.55
     
    17.6588D   W
    Secure EnergySES8.53▲0.26.98
     
    9.8286D   W
    REFINING & MARKETING
    Parkland FuelPKI41.70▲4.324.97
     
    47.4596D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Occidental Petro (OXY +4.9%)
  • Baker Hughes (BHGE +1.2%)
  • Kinder Morgan (KMI +1.1%)
  • Ntl-Oilwell Varco (NOV +1%)
  • EOG Resources (EOG +0.9%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Marathon Petro (MPC -2%)
  • Marathon Oil (MRO -1.9%)
  • Newfield Expl (NFX -1.6%)
  • EQT Corp (EQT -0.9%)
  • Apache (APA -0.6%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM81.99▲0.472.16
     
    89.3060D   W
    ChevronCVX118.90▼-0.1107.54
     
    133.8849D   W
    MIDSTREAM
    Kinder MorganKMI17.45▲1.114.69
     
    19.8367D   W
    Williams CoWMB25.74▲0.123.54
     
    33.6739D   W
    ONEOKOKE63.69▼-0.449.65
     
    71.9949D   W
    LARGE CAP E&P
    ConocoPhillipsCOP69.50▲0.748.97
     
    80.2453D   W
    EOG ResourcesEOG107.33▲0.996.54
     
    133.5319D   W
    Occidental PetroOXY73.34▲4.962.47
     
    87.6733D   W
    Anadarko PetroAPC54.77▲0.246.80
     
    76.705D   W
    Concho ResCXO141.37▼-0.4123.63
     
    163.1134D   W
    SERVICES
    SchlumbergerSLB52.08▲0.250.72
     
    80.352D   W
    HalliburtonHAL35.770.033.73
     
    57.863D   W
    Ntl-Oilwell VarcoNOV36.87▲1.031.47
     
    49.0814D   W
    TechnipFMCFTI26.73▲0.225.36
     
    35.0012D   W
    Baker HughesBHGE27.16▲1.225.53
     
    37.764D   W
    REFINERS
    Phillips 66PSX100.88▲0.489.14
     
    123.9718D   W
    Valero EnergyVLO91.28▲0.180.00
     
    126.986D   W
    Marathon PetroMPC68.37▼-2.060.10
     
    88.4514D   W
    HollyFrontierHFC65.50▲0.540.34
     
    83.2854↓D   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.A63.45▲0.160.53
     
    73.8634D   W
    TotalTOT58.57▲0.253.37
     
    65.6940D   W
    BPBP42.66▲0.136.15
     
    47.8342D   W
    EniE35.320.032.13
     
    40.1540D   W
    EquinorEQNR25.57▼-0.619.76
     
    28.9344D   W
    ANALYST RATINGS

    UPGRADES

    • Crew Energy (CR.TO): Upgraded from Neutral to Buy at Eight Capital.

    • Enbridge (ENB.TO): Upgraded from Market Perform to Outperform at Wells Fargo.

    • Ensign Energy (ESI.TO): Upgraded from Sector Underperform to Sector Perform at Scotia Capital.

    • Kosmos Energy (KOS): Upgraded from Neutral to Buy at Goldman Sachs.

    DOWNGRADES

    • CVR Energy (CVI): Downgraded from Buy to Neutral at Goldman Sachs.

    • Encana (ECA.TO): Downgraded to Market Perform at BMO.

    • PBF Logistics (PBFX): Downgraded from Outperform to Market Perform at Wells Fargo.

    • Shell Midstream Partners (SHLX): Downgraded from Outperform to Sector Perform at RBC.


    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.
    WTI continues downtrend as US output surges to new record highs

    WTI continues downtrend as US output surges to new record highs

    Canadian oil prices rebound as differentials start to ease

    Canadian oil prices rebound as differentials start to ease

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