Another ugly day in markets as investors dump stocks, commodities, treasuries and the US dollar

Another ugly day in markets as investors dump stocks, commodities, treasuries and the US dollar

Today's energy market summary:

  • Despite concerns over Libyan output and an attempt by OPEC to improve "openness and transparency," oil prices continued to sell off on Thursday, sending Brent below US$55 for the first time since September 2017, and WTI down another 3%.

  • Energy commodities declined across the board, including Henry Hub natural gas (-3.8%), gasoline (-4.8%) and heating oil (-3.3%).

  • Canadian Light was the only gainer in energy markets, as the discount to WTI narrowed by almost US$2/bbl, boosting prices by 1%.

Today's equity market action:

  • Volatility continues in global markets, with most indices posting their third day of losses this week. The CBOE Volatility Index (VIX) touched 30 on Thursday, a level not seen since last February.

  • New additions to the list of worries now include a potential shutdown of the US government, tax-loss selling season and a forced liquidation of long positions due to the sharp sell-off that began in October.

  • The US dollar fell another 1% on Thursday. Treasuries declined along with equity markets, as US bond yields perked up slightly. The Japanese yen (+1.1%) and gold (+1.0%) were the only notable gainers.

  • The Dow Jones Industrial lost another 2% for the day, and is now down over 1,200 points this week. The broader S&P 500 lost 1.6%, with declines seen across all sectors, except utilities. 

  • In Toronto, the TSX dipped another 0.8%. With the exception of gold stocks, all sectors ended the day lower.

  • The energy sector continues to sink lower on both sides of the border. The SPX energy basket returned to the lows of February 2016, shedding another 3% on Thursday. On the TSX, energy lost another 1.7%, touching the lows of January 2016.

Today's notable energy news:

  • Husky Energy (HSE.TO -1.7%) cut its 2019 capital budget to about $3.4 billion, $300 million lower than the previous forecast. The cuts were blamed on the Alberta government's recent curtailment program. Full year production guidance was reduced to about 300,000 boe/day, roughly the same as 2018.

  • ExxonMobil (XOM -3.0%) has officially pulled the plug on its $25 billion West Coast Canada LNG export facility in Prince Rupert, BC. The project has been under review by federal regulators since 2015. The company says the cancellation is part of its plan to focus strictly on projects that "provide the highest return to shareholders." 

  • BP (BP -1.0%) and Azerbaijan's state-owned SOCAR announced a new JV for the construction of a "world-scale" petrochemicals complex in Turkey. The proposed facility would be integrated with SOCAR's existing refinery and another petrochemicals plant located in the same region. A final investment decision is expected at the end of 2019, with production potentially commencing in 2023.

  • Goodrich Petroleum (GDP +2.2%) slashed its 2019 capital budget guidance by US$40 million to about US$100 million, but assures investors next year's production won't be impacted. Output is expected to average 140 MMcfe/day in 2019, weighted 98% natural gas.

  • TechnipFMC (FTI -0.1%) announced a "significant" EPC contract from Neste for the expansion of its renewable products refinery in Singapore. The project will increase production by up to 1.3 million t/year. Financial terms of the deal were not disclosed.

  • NGL Energy Partners (NGL -5.4%) reached a deal to sell its South Pecos water disposal assets in Texas to WaterBridge Resources for US$239 million in cash, plus additional contingencies.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$54.35▼5.054.35
 
86.29
WTI$45.88▼2.845.88
 
76.41
CDN LT$37.93▲1.020.83
 
69.32
C5+$42.13▼3.037.04
 
71.40
WCS$29.93▼4.112.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ DEC 20   █ DEC 13   █ DEC 6   █ NOV 29   (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
  • Parex Resources (PXT +1.9%)
  • Ensign Energy Svcs (ESI +1.7%)
  • TORC O&G (TOG +1.7%)
  • ARC Resources (ARX +1.6%)
  • Tamarack Valley (TVE +1.5%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Nuvista Energy (NVA -5.9%)
  • Baytex Energy (BTE -5.1%)
  • Shawcor (SCL -4.2%)
  • Crescent Point (CPG -3.8%)
  • Suncor Energy (SU -3.3%)
  • 12-MO LOWS
  • Suncor Energy (SU -3.3%)
  • Husky Energy (HSE -1.7%)
  • Inter Pipeline (IPL -2.1%)
  • Keyera (KEY -3%)
  • Cdn Natural Res (CNQ -0.6%)
  • Cenovus Energy (CVE -2.6%)
  • Encana (ECA -2.5%)
  • Shawcor (SCL -4.2%)
  • Mullen Group (MTL -0.5%)
  • Secure Energy (SES +0.2%)
  • Enerplus (ERF -2.4%)
  • Peyto Exploration (PEY 0%)
  • Gran Tierra (GTE -2%)
  • Birchcliff Energy (BIR +1.5%)
  • Precision Drilling (PD +0.8%)
  • Ensign Energy Svcs (ESI +1.7%)
  • 10-YR LOWS
  • Peyto Exploration (PEY 0%)
  • Birchcliff Energy (BIR +1.5%)
  • Precision Drilling (PD +0.8%)
  • Ensign Energy Svcs (ESI +1.7%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU37.13▼-3.336.87
     
    55.4714D   W
    Imperial OilIMO34.44▼-1.733.43
     
    44.9125D   W
    Husky EnergyHSE14.27▼-1.714.20
     
    22.9915D   W
    MIDSTREAM
    EnbridgeENB41.89▼-1.337.36
     
    51.0479D   W
    TransCanadaTRP50.61▼-3.048.92
     
    62.2455D   W
    Pembina PipelinePPL41.15▼-2.937.60
     
    47.8455D   W
    Inter PipelineIPL19.24▼-2.119.18
     
    26.3726D   W
    Keyera KEY26.62▼-3.026.06
     
    38.9119D   W
    Gibson EnergyGEI18.15▼-1.815.68
     
    23.3266D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ32.40▼-0.631.89
     
    49.0821D   W
    Cenovus EnergyCVE9.15▼-2.68.95
     
    14.8415D   W
    EncanaECA7.50▼-2.57.47
     
    18.542D   W
    TourmalineTOU16.24▲0.315.87
     
    26.1914D   W
    Vermilion EnergyVET28.60▼-0.826.90
     
    50.4612D   W
    SERVICES
    Pason SystemsPSI18.46▲1.416.05
     
    24.5743D   W
    EnerflexEFX15.55▼-0.713.55
     
    18.7282D   W
    ShawcorSCL15.80▼-4.215.62
     
    29.506D   W
    Mullen Group MTL11.97▼-0.511.88
     
    16.9326D   W
    Secure EnergySES6.73▲0.26.65
     
    9.8233D   W
    REFINING & MARKETING
    Parkland FuelPKI33.34▼-1.226.34
     
    47.4559↓D   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
  • Helmerich & Payne (HP -7.1%)
  • Noble Energy (NBL -6.2%)
  • Apache (APA -6.1%)
  • Devon Energy (DVN -5.7%)
  • Anadarko Petro (APC -5.6%)
  • 12-MO LOWS
  • Exxon Mobil (XOM -3%)
  • Chevron (CVX -2.6%)
  • Williams Co (WMB -2.2%)
  • EOG Resources (EOG -3.5%)
  • Occidental Petro (OXY -2.6%)
  • Anadarko Petro (APC -5.6%)
  • Concho Res (CXO -3.1%)
  • Schlumberger (SLB -4.2%)
  • Halliburton (HAL -1.8%)
  • Ntl-Oilwell Varco (NOV -2.1%)
  • Baker Hughes (BHGE -1.1%)
  • Marathon Petro (MPC -2.1%)
  • Phillips 66 (PSX -2.9%)
  • Valero Energy (VLO -0.6%)
  • Pioneer Natural Res (PXD -3%)
  • Marathon Oil (MRO -1.9%)
  • Apache (APA -6.1%)
  • Devon Energy (DVN -5.7%)
  • Noble Energy (NBL -6.2%)
  • Cimarex Energy (XEC -3%)
  • Helmerich & Payne (HP -7.1%)
  • 10-YR LOWS
  • Baker Hughes (BHGE -1.1%)
  • Apache (APA -6.1%)
  • Noble Energy (NBL -6.2%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM68.63▼-3.068.05
     
    89.3035D   W
    ChevronCVX104.98▼-2.6104.19
     
    133.8842D   W
    MIDSTREAM
    Kinder MorganKMI15.55▼-0.214.69
     
    19.8356D   W
    Williams CoWMB21.84▼-2.221.55
     
    33.6728D   W
    ONEOKOKE54.52▼-2.551.28
     
    71.9931D   W
    LARGE CAP E&P
    ConocoPhillipsCOP60.00▼-2.150.18
     
    80.2450D   W
    EOG ResourcesEOG89.74▼-3.589.02
     
    133.5319D   W
    Occidental PetroOXY60.63▼-2.660.03
     
    87.6721D   W
    Anadarko PetroAPC44.15▼-5.643.93
     
    76.705D   W
    Concho ResCXO101.57▼-3.1101.18
     
    163.1111D   W
    SERVICES
    SchlumbergerSLB36.20▼-4.236.06
     
    80.351D   W
    HalliburtonHAL27.14▼-1.827.02
     
    57.864D   W
    Ntl-Oilwell VarcoNOV25.65▼-2.125.10
     
    49.082D   W
    Baker HughesBHGE20.82▼-1.120.69
     
    37.768D   W
    TechnipFMCFTI19.08▼-0.118.95
     
    35.003D   W
    REFINERS
    Marathon PetroMPC57.42▼-2.157.09
     
    88.4526D   W
    Phillips 66PSX82.78▼-2.982.34
     
    123.9720D   W
    Valero EnergyVLO70.61▼-0.670.01
     
    126.988D   W
    HollyFrontierHFC50.69▼-1.642.42
     
    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
  • Royal Dutch Shell (RDS.A -0.8%)
  • PetroChina (PTR -1.4%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A56.43▼-0.856.27
     
    73.8611D   W
    TotalTOT52.24▲0.151.92
     
    65.6955D   W
    BPBP37.26▼-1.036.15
     
    47.8344D   W
    EniE31.25▲0.031.04
     
    40.1553D   W
    EquinorEQNR21.01▼-1.920.35
     
    28.9332D   W
    ANALYST RATINGS

    UPGRADES

    • Continental Resources (CLR): Upgraded from Equal Weight to Overweight at Capital One.

    • DCP Midstream (DCP): Upgraded from Hold to Buy at Jefferies Financial.

    • EnLink Midstream (ENLC): Upgraded from Hold to Buy at Jefferies Financial.

    • EnLink Midstream Partners (ENLK): Upgraded from Hold to Buy at Jefferies Financial.

    • Halliburton (HAL): Upgraded from Hold to Buy at Societe General.

    • Kinder Morgan (KMI): Upgraded from Hold to Buy at Jefferies Financial.

    • Magellan Midstream Partners (MMP): Upgraded from Hold to Buy at Jefferies Financial.

    • Plains American Pipeline (PAA): Upgraded from Hold to Buy at Jefferies Financial.

    • Plains GP (PAGP): Upgraded from Hold to Buy at Jefferies Financial.

    • Phillips 66 (PSX): Upgraded from Hold to Buy at Jefferies Financial.

    • Phillips 66 Partners (PSXP): Upgraded from Hold to Buy at Jefferies Financial.

    • Targa Resources (TRGP): Upgraded from Hold to Buy at Jefferies Financial.

    DOWNGRADES

    • Anadarko Petroleum (APC): Downgraded from Overweight to Equal Weight at Capital One.

    • Antero Resources (AR): Downgraded from Overweight to Equal Weight at Capital One.

    • Berry Petroleum (BRY): Downgraded from Overweight to Equal Weight at Capital One.

    • Callon Petroleum (CPE): Downgraded from Overweight to Equal Weight at Capital One.

    • Carrizo Oil & Gas (CRZO): Downgraded from Overweight to Equal Weight at Capital One.

    • Chesapeake Energy (CHK): Downgraded from Overweight to Underweight at Capital One.

    • Denbury Resources (DNR): Downgraded from Overweight to Underweight at Capital One.

    • Devon Energy (DVN): Downgraded from Overweight to Underweight at Capital One.

    • Eclipse Resources (ECR): Downgraded from Overweight to Underweight at Capital One.

    • EQGP (EQCP): Downgraded from Buy to Hold at Jefferies Financial.

    • Enerplus (ERF.TO): Downgraded from Overweight to Equal Weight at Capital One.

    • Gulfport Energy (GPOR): Downgraded from Overweight to Equal Weight at Capital One.

    • Halcon Resources (HK): Downgraded from Overweight to Underweight at Capital One.

    • Laredo Petroleum (LPI): Downgraded from Overweight to Underweight at Capital One.

    • Metador Resources (MTDR): Downgraded from Overweight to Equal Weight at Capital One.

    • Noble Energy (NBL): Downgraded from Overweight to Underweight at Capital One.

    • Newfield Exploration (NFX): Downgraded from Overweight to Equal Weight at Capital One.

    • Oasis Petroleum (OAS): Downgraded from Overweight to Underweight at Capital One.

    • Oceaneering International (OII): Downgraded from Buy to Hold at Societe General.

    • Occidental Petroleum (OXY): Downgraded from Overweight to Equal Weight at Capital One.

    • PDC Energy (PDCE): Downgraded from Overweight to Equal Weight at Capital One.

    • QEP Resources (QEP): Downgraded from Overweight to Equal Weight at Capital One.

    • Rowan Companies (RDC): Downgraded from Buy to Hold at Societe General.

    • Resolute Energy (REN): Downgraded from Overweight to Equal Weight at Capital One.

    • Range Resources (RRC): Downgraded from Overweight to Equal Weight at Capital One.

    • SM Energy (SM): Downgraded from Overweight to Equal Weight at Capital One.

    • Southwestern Energy (SWN): Downgraded from Overweight to Underweight at Capital One.

    • Unit (UNT): Downgraded from Overweight to Equal Weight at Capital One.


    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.
    An ugly end to an ugly week, as the market sell-off continues

    An ugly end to an ugly week, as the market sell-off continues

    Oil prices recoup some of yesterday's losses on better-than-expected drawdowns in US stockpiles

    Oil prices recoup some of yesterday's losses on better-than-expected drawdowns in US stockpiles

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