Oil prices slump after OPEC drops 2019 demand forecast
Today's energy market summary:
A mixed bag in oil markets today, with Brent ending Wednesday unchanged and WTI posting a loss of 1%.
The differential on Canadian heavy crude narrowed by about US$0.70, boosting the price of WCS by 0.5%.
OPEC cut it 2019 demand forecast to 31.44 million bbl/day, down 100,000 bbl/day from its previous forecast, due to expectations for slower economic growth.
The US Energy Information Administration (EIA) reported a small decline in US crude stockpiles and slight downtick in total US output. Gasoline stockpiles rose another 2.1 million barrels, sending gasoline prices down 1.4%.
Natural gas was the biggest loser in energy commodities today, with Henry Hub falling over 6%. AECO gas prices were roughly unchanged for the day.
Today's equity market action:
The Canadian energy sector rose 1.6%, its first increase this week. Gains were broadly based across all subsectors, except for Husky Energy (HSE.TO -0.5%) and Vermilion Energy (VET.TO -2.6%).
The SPX energy space rose a more modest 0.3%. Heavy-weights ExxonMobil (XOM -0.9%) and ConocoPhillips (COP -0.3%) ended the day lower, offsetting gains in most other energy components.
Today's notable energy news:
Hess (HES -0.5%) says it expects to grow oil and gas production more than 10% annually through 2025, due to higher output from the Bakken shale and new production from offshore Guyana. The company set a 2019 capital budget of US$2.9 billion, up 38% from the current year. Hess will complete its US$1.5 billion share repurchase program by the end of this year and says it does not expect to make more buybacks next year.
TechnipFMC (FTI +3.2%) is forecasting 2019 revenues of about US$5.5 billion, and also announced another US$300 million in share buybacks, in addition to the US$500 million expected to be completed by the end of this year.
ExxonMobil (XOM -0.9%) and Australia's BHP Billiton (BHP +1.5%) announced a positive investment decision on the West Barracouta gas field, located off the coast of Australia. Production is expected to begin in 2021.
|CURRENCIES & YIELDS|
|Suncor Energy||SU||41.43||▲1.4||40.49||55.47||23||D W|
|Imperial Oil||IMO||36.24||▲1.4||33.43||44.91||23||D W|
|Husky Energy||HSE||15.33||▼-0.5||15.27||22.99||16||D W|
|Pembina Pipeline||PPL||43.62||▲0.5||37.60||47.84||70||D W|
|Inter Pipeline||IPL||20.41||▲0.6||20.26||27.87||27↓||D W|
|Gibson Energy||GEI||19.84||▲1.8||15.68||23.32||90||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||35.56||▲2.2||32.08||49.08||33||D W|
|Cenovus Energy||CVE||10.52||▲4.2||9.03||14.84||32||D W|
|Vermilion Energy||VET||30.00||▼-2.6||29.93||50.46||11||D W|
|Pason Systems||PSI||19.00||▲1.4||16.05||24.57||39||D W|
|Mullen Group||MTL||12.26||▲2.4||11.93||16.93||22||D W|
|Secure Energy||SES||7.35||▲1.9||6.72||9.82||56↑||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||36.79||▼-0.1||26.31||47.45||90||D W|
|Exxon Mobil||XOM||76.02||▼-0.9||72.16||89.30||50||D W|
|Kinder Morgan||KMI||16.23||▲0.7||14.69||19.83||51||D W|
|Williams Co||WMB||24.19||▲1.1||23.54||33.67||36||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||103.93||▲1.8||96.54||133.53||45||D W|
|Occidental Petro||OXY||65.41||▲1.1||62.47||87.67||22||D W|
|Anadarko Petro||APC||52.56||▲1.8||47.37||76.70||19||D W|
|Concho Res||CXO||122.21||▲0.3||117.74||163.11||38||D W|
|Ntl-Oilwell Varco||NOV||28.36||▲1.0||27.99||49.08||2||D W|
|Baker Hughes||BHGE||21.57||▲1.3||20.81||37.76||3||D W|
|Marathon Petro||MPC||62.04||▲1.1||59.55||88.45||25||D W|
|Phillips 66||PSX||89.25||▲0.9||86.62||123.97||19||D W|
|Valero Energy||VLO||73.64||▲0.5||71.48||126.98||3||D W|
Ecopetrol (EC): Upgraded from Sell to Neutral at UBS.
Newfield Exploration (NFX): Downgraded from Buy to Hold at Williams Capital.
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.