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

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

Today's energy market summary:

  • Oil prices continue to tread water, giving back all of yesterday's gains on Friday. Today's declines were blamed on weak economic data out of China and the EU, causing traders to hit the sell button on riskier assets.

  • Brent gave back 2%, while WTI fell 2.6%. Canada's light and heavy oil benchmarks declined over 3%, despite no change in the Canadian differentials. January contracts for WCS, Canadian Light and Edmonton Condensate (C5+) all expired on Friday.

  • Gasoline also declined 3%, while heating oil gave fell almost 2%. Natural gas prices took a major correction on Friday, falling over 7%.

  • Aside from WCS, oil prices have been trending sideways since the beginning of the month.

  • Baker Hughes reported another weekly decline in rig counts, falling by four in the US and seven in Canada. Canada also lost five natural rigs this week.

Today's equity market action:

  • Weak retail sales data out of China overnight sent equity markets into a tailspin on Friday morning, with indices in China, Japan and the US falling an average of 2%.

  • The Dow Jones Industrial sank 500 points while the S&P 500 declined 2.1%. In Toronto, the TSX fell 1% for the day, ending the week lower by 1.4%.

  • Energy stocks pulled back sharply on Friday. The TSX energy sector declined 3.1% while the US energy basket fell 2.4%. Declines were across all subsectors, with service providers once again leading to the downside.

  • Despite a major improvement in Canadian oil prices in recent weeks, the TSX energy sector ended Friday back at the lows of February 2016.

  • Today's notable fresh 52-week lows include Suncor Energy (SU.TO -3.3%), Husky Energy (HSE.TO -1.2%), Marathon Petroleum (MPC -3.6%) and Phillips 66 (PSX -2.3%).

Today's notable energy news:

  • Suncor Energy (SU.TO -3.3%) says it plans to boost total output 10% in 2019, rising to about 800,000 boe/day. Next year's guidance assumes production out of Alberta will be constrained due to the province's recently announced curtailment program. Overall capital spending will remain unchanged next year, forecasted to be between $4.9 and $5.6 billion. About two-thirds of those funds will be dedicated towards maintenance and sustaining capital.

  • Michigan Governor Rick Snyder has signed a series of agreements with Enbridge (ENB.TO -0.8%) for the construction of a tunnel under the Straits of Mackinac, which will house the company's Line 5. The Republican governor leaves office at the end of the month, to be replaced by a Democrat, who has denounced the tunnel and the pipeline.

  • Phillips 66 (PSX -2.3%) announced a 2019 capital program of US$2.3 billion, excluding expenditures for its MLP Phillips 66 Partners (PSXP +0.5%). About US$1.6 billion will be spent on its midstream business unit, with another US$1 billion allocated towards its refining segment. The company says it aims to reinvest 60% of its cash flow back into the business, while the remaining 40% will be returned to shareholders in the form of share buybacks and dividends.

  • ExxonMobil (XOM -1.8%) and Angola's state-owned Sonangol signed an exploration MOU for three blocks in the Namibe Basin. XOM has been operating in the country for more than 25 years. Angola is Africa's second-largest oil producer but has been facing steep declines in recent years. Oil accounts for 95% of the country's exports and around 70% of government revenues.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$60.28▼1.958.71
 
86.29
WTI$51.20▼2.650.29
 
76.41
CDN LT$42.53▼3.120.83
 
69.32
C5+$43.17▼3.137.04
 
71.40
WCS$33.68▼3.912.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ DEC 14   █ DEC 7   █ NOV 30   █ NOV 23   (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
  • CES Energy (CEU +0.3%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Tamarack Valley (TVE -7.1%)
  • Encana (ECA -6.2%)
  • Enerplus (ERF -6.1%)
  • Whitecap Res (WCP -5.7%)
  • Precision Drilling (PD -4.9%)
  • 12-MO LOWS
  • Suncor Energy (SU -3.3%)
  • Husky Energy (HSE -1.2%)
  • Inter Pipeline (IPL -0.6%)
  • Encana (ECA -6.2%)
  • Tourmaline (TOU -1.4%)
  • Vermilion Energy (VET -4.1%)
  • Shawcor (SCL -4.5%)
  • Peyto Exploration (PEY -3.9%)
  • Precision Drilling (PD -4.9%)
  • Advantage O&G (AAV -1.4%)
  • 10-YR LOWS
  • Tourmaline (TOU -1.4%)
  • Peyto Exploration (PEY -3.9%)
  • Precision Drilling (PD -4.9%)
  • Advantage O&G (AAV -1.4%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU39.62▼-3.339.28
     
    55.4720D   W
    Imperial OilIMO34.78▼-2.133.43
     
    44.9120D   W
    Husky EnergyHSE15.37▼-1.215.24
     
    22.9919D   W
    MIDSTREAM
    EnbridgeENB42.77▼-0.837.36
     
    51.0483D   W
    TransCanadaTRP53.55▼-0.248.92
     
    62.6273D   W
    Pembina PipelinePPL43.91▼-0.837.60
     
    47.8475D   W
    Inter PipelineIPL20.26▼-0.620.22
     
    27.7429D   W
    Keyera KEY28.21▼-0.627.27
     
    38.9125D   W
    Gibson EnergyGEI19.37▼-2.215.68
     
    23.3287D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ34.28▼-2.932.08
     
    49.0828D   W
    Cenovus EnergyCVE10.26▼-3.29.03
     
    14.8430D   W
    EncanaECA7.78▼-6.27.74
     
    18.542D   W
    TourmalineTOU16.81▼-1.416.71
     
    26.1914D   W
    Vermilion EnergyVET28.92▼-4.128.83
     
    50.4610D   W
    SERVICES
    Pason SystemsPSI18.58▼-2.616.05
     
    24.5740D   W
    EnerflexEFX15.40▼-3.113.55
     
    18.7274D   W
    ShawcorSCL16.92▼-4.516.66
     
    29.507D   W
    Mullen Group MTL12.29▼-0.111.93
     
    16.9327↑D   W
    Secure EnergySES7.22▼-1.46.72
     
    9.8251D   W
    REFINING & MARKETING
    Parkland FuelPKI36.17▼-2.326.34
     
    47.4590D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • None
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Newfield Expl (NFX -6.6%)
  • TechnipFMC (FTI -5.7%)
  • Schlumberger (SLB -4.7%)
  • Concho Res (CXO -4.7%)
  • Cimarex Energy (XEC -4.1%)
  • 12-MO LOWS
  • Williams Co (WMB -1.7%)
  • Concho Res (CXO -4.7%)
  • Schlumberger (SLB -4.7%)
  • Ntl-Oilwell Varco (NOV -3%)
  • TechnipFMC (FTI -5.7%)
  • Marathon Petro (MPC -3.6%)
  • Phillips 66 (PSX -2.3%)
  • Devon Energy (DVN -3.8%)
  • Noble Energy (NBL -4.1%)
  • Diamondback (FANG -3.8%)
  • Cimarex Energy (XEC -4.1%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • Exxon Mobil (XOM -1.8%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM75.58▼-1.872.16
     
    89.3057D   W
    ChevronCVX113.83▼-1.8107.54
     
    133.8859D   W
    MIDSTREAM
    Kinder MorganKMI16.17▼-1.514.69
     
    19.8357D   W
    Williams CoWMB23.45▼-1.723.35
     
    33.6738D   W
    ONEOKOKE60.19▼-2.151.28
     
    71.9955D   W
    LARGE CAP E&P
    ConocoPhillipsCOP64.55▼-2.450.18
     
    80.2464D   W
    EOG ResourcesEOG100.08▼-2.796.54
     
    133.5339D   W
    Occidental PetroOXY65.10▼-2.462.47
     
    87.6729D   W
    Anadarko PetroAPC50.95▼-2.947.37
     
    76.7018D   W
    Concho ResCXO115.02▼-4.7114.40
     
    163.1125D   W
    SERVICES
    SchlumbergerSLB39.10▼-4.738.82
     
    80.351D   W
    HalliburtonHAL29.00▼-3.028.17
     
    57.864D   W
    Ntl-Oilwell VarcoNOV26.68▼-3.026.53
     
    49.082D   W
    Baker HughesBHGE21.45▼-2.620.81
     
    37.766D   W
    TechnipFMCFTI20.14▼-5.720.06
     
    35.003D   W
    REFINERS
    Marathon PetroMPC59.87▼-3.659.55
     
    88.4522D   W
    Phillips 66PSX86.83▼-2.386.47
     
    123.9718D   W
    Valero EnergyVLO73.30▼-0.271.48
     
    126.985D   W
    HollyFrontierHFC54.08▼-3.142.42
     
    83.2817D   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.A58.23▼-1.757.65
     
    73.869D   W
    TotalTOT54.36▼-1.053.37
     
    65.6949D   W
    BPBP38.66▼-1.636.15
     
    47.8341D   W
    EniE31.68▼-1.731.18
     
    40.1540D   W
    EquinorEQNR22.10▼-3.820.11
     
    28.9331D   W
    ANALYST RATINGS

    UPGRADES

    • AltaGas (ALA.TO): Upgraded from Hold to Buy at Canaccord Genuity.

    • ConocoPhillips (COP): Upgraded from Hold to Buy at Tudor Pickering.

    • TechnipFMC (FTI): Upgraded from Neutral to Buy at Seaport Global Securities.

    DOWNGRADES

    • Callon Petroleum (CPE): Downgraded from Buy to Hold at Tudor Pickering.

    • Carrizo Oil & Gas (CRZO): Downgraded from Buy to Hold at Tudor Pickering.

    • Centennial Resource Development (CDEV): Downgraded from Buy to Hold at Tudor Pickering.

    • Extraction Oil & Gas (XOG): Downgraded from Buy to Hold at Tudor Pickering.

    • PDC Energy (PDCE): Downgraded from Buy to Hold at Tudor Pickering.

    • SM Energy (SM): Downgraded from Buy to Hold at Tudor Pickering.


    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 sink along with global equity markets, as WTI hits 14-month low

    Oil prices sink along with global equity markets, as WTI hits 14-month low

    Oil prices buoyed by promises of supply cuts in 2019

    Oil prices buoyed by promises of supply cuts in 2019

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