Oil prices slump after OPEC drops 2019 demand forecast

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:

  • Most global markets ended the day higher, including the US and Canada. The S&P 500 and DJIA rose about 0.6%. European exchanges averaged a 2% gain while the TSX rose 0.8%.

  • 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.

  • Total (TOT +1.4%) was awarded two new exploration blocks off the coast of Mauritania and also confirmed the cancellation of 44.6 million shares purchased since last February.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$60.15▼0.158.71
 
86.29
WTI$51.15▼1.050.29
 
76.41
CDN LT$42.46▼0.720.83
 
69.32
C5+$42.83▼1.337.04
 
71.40
WCS$33.61▲0.512.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ DEC 12   █ DEC 5   █ NOV 28   █ NOV 21   (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
  • Kelt Exploration (KEL +7.3%)
  • Tamarack Valley (TVE +6.2%)
  • Ensign Energy Svcs (ESI +4.7%)
  • Precision Drilling (PD +4.3%)
  • Cenovus Energy (CVE +4.2%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Vermilion Energy (VET -2.6%)
  • Advantage O&G (AAV -2.4%)
  • Parex Resources (PXT -1%)
  • Peyto Exploration (PEY -0.8%)
  • Seven Generations (VII -0.7%)
  • 12-MO LOWS
  • Husky Energy (HSE -0.5%)
  • Vermilion Energy (VET -2.6%)
  • Mullen Group (MTL +2.4%)
  • Peyto Exploration (PEY -0.8%)
  • Advantage O&G (AAV -2.4%)
  • 10-YR LOWS
  • Peyto Exploration (PEY -0.8%)
  • Advantage O&G (AAV -2.4%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU41.43▲1.440.49
     
    55.4723D   W
    Imperial OilIMO36.24▲1.433.43
     
    44.9123D   W
    Husky EnergyHSE15.33▼-0.515.27
     
    22.9916D   W
    MIDSTREAM
    EnbridgeENB42.49▲0.937.36
     
    51.0474D   W
    TransCanadaTRP53.28▲0.948.92
     
    63.0672D   W
    Pembina PipelinePPL43.62▲0.537.60
     
    47.8470D   W
    Inter PipelineIPL20.41▲0.620.26
     
    27.8727↓D   W
    Keyera KEY28.37▲2.727.27
     
    38.9123↑D   W
    Gibson EnergyGEI19.84▲1.815.68
     
    23.3290D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.56▲2.232.08
     
    49.0833D   W
    Cenovus EnergyCVE10.52▲4.29.03
     
    14.8432D   W
    EncanaECA8.43▲2.18.11
     
    18.542D   W
    TourmalineTOU17.50▲0.816.87
     
    26.1915D   W
    Vermilion EnergyVET30.00▼-2.629.93
     
    50.4611D   W
    SERVICES
    Pason SystemsPSI19.00▲1.416.05
     
    24.5739D   W
    EnerflexEFX15.84▲2.513.55
     
    18.7284D   W
    ShawcorSCL17.91▼-0.117.58
     
    29.5010D   W
    Mullen Group MTL12.26▲2.411.93
     
    16.9322D   W
    Secure EnergySES7.35▲1.96.72
     
    9.8256↑D   W
    REFINING & MARKETING
    Parkland FuelPKI36.79▼-0.126.31
     
    47.4590D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • HollyFrontier (HFC +3.5%)
  • Helmerich & Payne (HP +3.2%)
  • TechnipFMC (FTI +3.2%)
  • Halliburton (HAL +2.8%)
  • Apache (APA +2.5%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Cabot O&G (COG -2.9%)
  • Diamondback (FANG -1.6%)
  • EQT Corp (EQT -1.4%)
  • Exxon Mobil (XOM -0.9%)
  • Hess Corp (HES -0.5%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM76.02▼-0.972.16
     
    89.3050D   W
    ChevronCVX115.62▲0.1107.54
     
    133.8856D   W
    MIDSTREAM
    Kinder MorganKMI16.23▲0.714.69
     
    19.8351D   W
    Williams CoWMB24.19▲1.123.54
     
    33.6736D   W
    ONEOKOKE59.71▲1.251.28
     
    71.9942D   W
    LARGE CAP E&P
    ConocoPhillipsCOP65.27▼-0.350.18
     
    80.2458D   W
    EOG ResourcesEOG103.93▲1.896.54
     
    133.5345D   W
    Occidental PetroOXY65.41▲1.162.47
     
    87.6722D   W
    Anadarko PetroAPC52.56▲1.847.37
     
    76.7019D   W
    Concho ResCXO122.21▲0.3117.74
     
    163.1138D   W
    SERVICES
    SchlumbergerSLB41.44▲0.540.53
     
    80.352D   W
    HalliburtonHAL29.61▲2.828.17
     
    57.863D   W
    Ntl-Oilwell VarcoNOV28.36▲1.027.99
     
    49.082D   W
    Baker HughesBHGE21.57▲1.320.81
     
    37.763D   W
    TechnipFMCFTI21.24▲3.220.50
     
    35.004D   W
    REFINERS
    Marathon PetroMPC62.04▲1.159.55
     
    88.4525D   W
    Phillips 66PSX89.25▲0.986.62
     
    123.9719D   W
    Valero EnergyVLO73.64▲0.571.48
     
    126.983D   W
    HollyFrontierHFC57.06▲3.542.42
     
    83.2824D   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.A58.98▲0.857.65
     
    73.8610D   W
    TotalTOT54.55▲1.453.37
     
    65.6942D   W
    BPBP39.05▼-0.136.15
     
    47.8336D   W
    EniE32.12▲1.431.18
     
    40.1537D   W
    EquinorEQNR22.90▲0.720.11
     
    28.9333D   W
    ANALYST RATINGS

    UPGRADES

    • Ecopetrol (EC): Upgraded from Sell to Neutral at UBS.

    DOWNGRADES

    • Newfield Exploration (NFX): Downgraded from Buy to Hold at Williams Capital.


    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.
    Oil prices buoyed by promises of supply cuts in 2019

    Oil prices buoyed by promises of supply cuts in 2019

    Oil prices edge higher on Libyan supply disruptions and expectations for lower US crude stockpiles

    Oil prices edge higher on Libyan supply disruptions and expectations for lower US crude stockpiles

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