Oil prices buoyed by promises of supply cuts in 2019

Oil prices buoyed by promises of supply cuts in 2019

Today's energy market summary:

  • Global oil benchmarks rose across the board today, including Canada. Brent rose 2.2% while WTI gained almost 3%. 

  • Western Canadian Select was the best performer, rising over 4%, ending the day above US$35 for the first time since early October.

  • Gasoline prices continue their wild ride, gaining over 4% on Thursday

  • The International Energy Agency (IEA) now says oil markets will be undersupplied next year, assuming OPEC, Russia and Alberta stick to their promised production cuts. World oil supply declined 360,000 bbl/day in November, despite record high output out of Saudi Arabia and the UAE. The IEA kept its 2018/19 demand growth forecast largely unchanged.

Today's equity market action:

  • A relatively quiet day in equity markets with the NYSE and S&P 500 ending the day unchanged. The TSX declined 0.2%, despite gains in more defensive staples and utilities sectors.

  • The TSX energy sector was unchanged for the day, with winners and losers evenly balanced across all subsectors.

  • The SPX energy sector rose 0.4%, pulled higher by integrated and midstream names.

  • Following in the footsteps of JP Morgan last week, Raymond James downgraded a suite of "highly leveraged" energy services names, citing expectations for a slowdown in drilling activity in the short-term.

Today's notable energy news:

  • AltaGas (ALA.TO +9.7%) announced the sale of its 55% stake in various BC hydroelectric projects for $1.39 billion. The company cut its annual divided by 56% to $0.96 per share, which is expected to save the company $1.3 billion by 2023. Altagas says it plans to divest up to $2.0 billion in assets next year, and says it intends to refinance the remaining balance on its bridge loan with a US$1.2 billion credit facility. The company also set a $1.3 billion capital spending program for 2019.

  • Minnesota state regulators have once again rejected petitions from various special interest groups to overturn approvals for Enbridge's (ENB.TO +1.5%) Line 3 Replacement Project. Project opponents are now headed to court as the company progresses on construction within the state.

  • Williams Co. (WMB -1.4%) has received final federal approvals for its Gateway Expansion Project, an expansion of its existing Transco natural gas pipeline. The new addition is expected to be inservice in time for the 2020/21 winter heating season, servicing customers in New Jersey and New York.

  • Pioneer Natural Resources (PXD -1.3%) announced plans to buy back up to US$2 billion of its common shares, representing about 8% of the company’s outstanding float.

  • Total (TOT +2.0%) announced the sale of a 4% stake in Australia's Ichthys LNG project to Japan's INPEX for US$1.6 billion. Once the  transaction closes, Total's interest is reduced to 26%. Ichthys began commercial service last October, producing 8.9 Mt/y of LNG, 1.65 Mt/y of LPG and 100,000 bbl/day of condensate.

  • PetroChina (PTR +1.4%) announced the discovery of a large "superior light crude oil" deposit in the Tarim basin, located in the northwestern region of Xinjiang. The company plans to complete a 500,000 boe/day facility in the region by 2020.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$61.45▲2.258.71
 
86.29
WTI$52.58▲2.850.29
 
76.41
CDN LT$43.91▲3.420.83
 
69.32
C5+$44.55▲4.037.04
 
71.40
WCS$35.06▲4.312.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ DEC 13   █ DEC 6   █ NOV 29   █ NOV 22   (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 +9.7%)
  • Baytex Energy (BTE +8.4%)
  • Seven Generations (VII +7.3%)
  • Tamarack Valley (TVE +6.3%)
  • PrairieSky (PSK +5.7%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Birchcliff Energy (BIR -6.7%)
  • Trican Well Svc (TCW -4.6%)
  • Peyto Exploration (PEY -2.2%)
  • Tourmaline (TOU -2%)
  • Imperial Oil (IMO -2%)
  • 12-MO LOWS
  • Vermilion Energy (VET +0.5%)
  • Parex Resources (PXT -1.9%)
  • Peyto Exploration (PEY -2.2%)
  • Freehold Royalties (FRU +1.2%)
  • Paramount Res (POU +0.3%)
  • Advantage O&G (AAV +1.4%)
  • 10-YR LOWS
  • Peyto Exploration (PEY -2.2%)
  • Advantage O&G (AAV +1.4%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU40.96▼-1.140.49
     
    55.4724D   W
    Imperial OilIMO35.53▼-2.033.43
     
    44.9121D   W
    Husky EnergyHSE15.56▲1.515.27
     
    22.9918D   W
    MIDSTREAM
    EnbridgeENB43.11▲1.537.36
     
    51.0485D   W
    TransCanadaTRP53.63▲0.748.92
     
    63.0676D   W
    Pembina PipelinePPL44.25▲1.437.60
     
    47.8481↑D   W
    Inter PipelineIPL20.39▼-0.120.26
     
    27.7929D   W
    Keyera KEY28.39▲0.127.27
     
    38.9125↑D   W
    Gibson EnergyGEI19.81▼-0.215.68
     
    23.3291D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.30▼-0.732.08
     
    49.0834D   W
    Cenovus EnergyCVE10.60▲1.29.03
     
    14.8438↑D   W
    EncanaECA8.29▼-1.78.11
     
    18.543D   W
    TourmalineTOU17.05▼-2.016.87
     
    26.1913D   W
    Vermilion EnergyVET30.16▲0.529.61
     
    50.4612D   W
    SERVICES
    Pason SystemsPSI19.07▲1.316.05
     
    24.5752D   W
    EnerflexEFX15.90▲0.413.55
     
    18.7289D   W
    ShawcorSCL17.72▼-1.117.58
     
    29.509D   W
    Mullen Group MTL12.30▲0.311.93
     
    16.9326D   W
    Secure EnergySES7.32▼-0.46.72
     
    9.8256D   W
    REFINING & MARKETING
    Parkland FuelPKI37.01▲0.626.34
     
    47.4592↑D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • ONEOK (OKE +2.9%)
  • Baker Hughes (BHGE +2.1%)
  • Occidental Petro (OXY +1.9%)
  • ConocoPhillips (COP +1.3%)
  • Exxon Mobil (XOM +1.2%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Ntl-Oilwell Varco (NOV -3.1%)
  • Diamondback (FANG -2.2%)
  • HollyFrontier (HFC -2.1%)
  • Helmerich & Payne (HP -1.7%)
  • Cimarex Energy (XEC -1.7%)
  • 12-MO LOWS
  • Schlumberger (SLB -1%)
  • Ntl-Oilwell Varco (NOV -3.1%)
  • TechnipFMC (FTI +0.5%)
  • Diamondback (FANG -2.2%)
  • Cimarex Energy (XEC -1.7%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM76.98▲1.272.16
     
    89.3058D   W
    ChevronCVX115.94▲0.3107.54
     
    133.8861D   W
    MIDSTREAM
    Kinder MorganKMI16.41▲1.114.69
     
    19.8357D   W
    Williams CoWMB23.86▼-1.423.54
     
    33.6742D   W
    ONEOKOKE61.45▲2.951.28
     
    71.9956D   W
    LARGE CAP E&P
    ConocoPhillipsCOP66.13▲1.350.18
     
    80.2468D   W
    EOG ResourcesEOG102.83▼-1.196.54
     
    133.5348D   W
    Occidental PetroOXY66.68▲1.962.47
     
    87.6731D   W
    Anadarko PetroAPC52.49▼-0.147.37
     
    76.7023D   W
    Concho ResCXO120.67▼-1.3117.74
     
    163.1137D   W
    SERVICES
    SchlumbergerSLB41.02▼-1.040.38
     
    80.352D   W
    HalliburtonHAL29.91▲1.028.17
     
    57.865D   W
    Ntl-Oilwell VarcoNOV27.50▼-3.027.30
     
    49.082D   W
    Baker HughesBHGE22.03▲2.120.81
     
    37.766D   W
    TechnipFMCFTI21.35▲0.520.46
     
    35.006D   W
    REFINERS
    Marathon PetroMPC62.12▲0.159.55
     
    88.4530D   W
    Phillips 66PSX88.83▼-0.586.62
     
    123.9721D   W
    Valero EnergyVLO73.46▼-0.271.48
     
    126.983D   W
    HollyFrontierHFC55.81▼-2.242.42
     
    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.A59.23▲0.457.65
     
    73.869D   W
    TotalTOT55.65▲2.053.37
     
    65.6954D   W
    BPBP39.29▲0.636.15
     
    47.8346D   W
    EniE32.24▲0.431.18
     
    40.1544D   W
    EquinorEQNR22.97▲0.320.11
     
    28.9340D   W
    ANALYST RATINGS

    UPGRADES

    • TechnipFMC (FTI): Upgraded from Market Perform to Buy at BMO.

    DOWNGRADES

    • Bonterra Energy (BNE.TO): Downgraded from Buy to Hold at GMP Securities.

    • CSI Compressco (CCLP): Downgraded from Outperform to Market Perform at Raymond James.

    • Equinor (EQNR): Downgraded from Hold to Sell at Pareto Securities.

    • Imperial Oil (IMO.TO): Downgraded from Buy to Hold at GMP Securities.

    • Journey Energy (JOY.TO): Downgraded from Buy to Hold at GMP Securities.

    • Nabors Industries (NBR): Downgraded from Strong Buy to Market Perform at Raymond James.

    • NCS Multistage (NCSM): Downgraded from Outperform to Market Perform at Raymond James.

    • Peyto Exploration & Development (PEY.TO): Downgraded from Buy to Hold at GMP Securities.

    • Paramount Resources (POU.TO): Downgraded from Hold to Reduce at GMP Securities.

    • RPC (RES): Downgraded from Outperform to Market Perform at Raymond James and from Hold to Sell at Jefferies Financial.

    • Superior Energy Services (SPN): Downgraded from Strong Buy to Market Perform at Raymond James.

    • Surge Energy (SGY.TO): Downgraded from Buy to Hold at GMP Securities.

    • Suncor Energy (SU.TO): Downgraded from Buy to Hold at GMP Securities.

    • Tetra Technologies (TTI): Downgraded from Outperform to Market Perform at Raymond James.

    • Unit (UNT): Downgraded from Strong Buy to Market Perform at Raymond James.

    • Weatherford International (WFT): Downgraded from Market Perform to Underperform at Raymond James.


    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.
    Energy stocks hit new lows as oil prices continue to trend sideways

    Energy stocks hit new lows as oil prices continue to trend sideways

    Oil prices slump after OPEC drops 2019 demand forecast

    Oil prices slump after OPEC drops 2019 demand forecast

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