An ugly end to an ugly week, as the market sell-off continues
Today's energy market summary:
Oil prices dipped lower again on Friday, with Brent, WTI and all Canadian benchmarks shedding about 1%. Both Brent and WTI lost 11% for the week, while Canadian Light and WCS declined about 12% since last Friday.
Henry Hub natural gas rose almost 5%, but still ended the week 2% lower.
Today's equity market action:
North American markets posted another day of heavy losses, as traders hit the sell button before heading out for Christmas holidays.
The US dollar gained almost 1%, reversing some of the losses incurred during the week. The loonie continues its nose dive, falling another 0.7% on Friday. The Canadian dollar is now down over 2% for the month of December.
Small cap stocks and the tech-heavy Nasdaq (-3.0%) posted the largest losses. The Dow Jones Industrial shed over 400 points (-1.8%), bringing the weekly grand total to about 1,650 points.
The S&P 500 declined another 2%, ending the week 7% lower. Losses were seen across all sectors, with more offensive technology and discretionary names leading to the downside.
In Toronto, the TSX declined 1.5%, led lower by energy, financials and healthcare stocks. The Canadian index has shed over 4.5% for the week.
The TSX energy sector posted another 1.9% decline on Friday, bringing weekly losses to 7%. The SPX energy basket posted its sixth consecutive day of declines, falling 1.1% on Friday, and ending the week down 9%.
Volumes are expected to be light next week, as both US and Canadian markets are closed on Tuesday. The TSX is also closed on Wednesday, resuming trading on Thursday morning.
Today's notable energy news:
MEG Energy (MEG.TO -4.4%) says it will waiver its shareholder rights plan on January 15, the day before Husky Energy's (HSE.TO -4.3%) takeover offer expires. Due to a 37% drop in Husky shares since the deal was announced, the offer price has declined from $11 to about $8 a share. MEG still remains opposed to the deal, but most analysts expect the transaction to close in the new year.
Enterprise Products Partners (EPD -0.7%) and Enbridge (ENB.TO +0.1%) announced the start of a binding open season for a 100,000 bbl/day expansion on the Seaway pipeline. Seaway transports crude from the Cushing storage hub in Oklahoma to refineries and export terminals in the Texas Gulf Coast. The extra capacity is expected to be available by February 1 of next year, through the addition of drag-reducing agents. Once expanded, Seaway's total capacity will increase to 950,000 bbl/day.
BP (BP +1.1%) announced a positive final investment decision for Phase 1 of its Greater Tortue Ahmeyim LNG Development offshore Mauritania and Senegal. The facility will be designed for 2.5 million t/yr of production, intended for both export and domestic use. The field is jointly owned with Kosmos Energy (KOS +4.6%).
Brazil's Petrobras (PBR -1.7%) has suspended all oil and fuel trading with Trafigura, Glencore and Vitol. The stoppage is in response to an ongoing bribery investigation, dubbed "Operation Car Wash."
Total (TOT -0.9%) announced a new JV with state-owned Sonangol to develop the downstream petroleum sector in Angola. The deal includes the addition of new retail gas stations under the Total brand.
According to Reuters, Total is also in advanced talks with Albion Energy and First Alpha Energy Capital to sell some of its assets in the UK North Sea, worth an estimated US$1.5 billion.
Columbia's Ecopetrol (EC -1.9%) signed a deal with Royal Dutch Shell (RSD.A +0.4%) and Chevron (CVX -0.7%) to acquire a 10% stake in Saturno block, located located off the coast of Sao Paulo and Rio de Janeiro in Brazil's Pre-Salt Region. Financial terms of the deal were not disclosed.
|CURRENCIES & YIELDS|
|Suncor Energy||SU||36.33||▼-2.2||36.12||55.47||15||D W|
|Imperial Oil||IMO||34.66||▲0.6||33.43||44.91||29||D W|
|Husky Energy||HSE||13.66||▼-4.3||13.49||22.99||13||D W|
|Pembina Pipeline||PPL||40.27||▼-2.1||37.60||47.84||49||D W|
|Inter Pipeline||IPL||19.30||▲0.3||19.05||26.37||28||D W|
|Gibson Energy||GEI||17.59||▼-3.1||15.68||23.32||58||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||31.59||▼-2.5||31.42||49.08||21||D W|
|Cenovus Energy||CVE||9.01||▼-1.5||8.95||14.84||18||D W|
|Vermilion Energy||VET||28.41||▼-0.7||26.90||50.46||13||D W|
|Pason Systems||PSI||17.77||▼-3.7||16.05||24.57||34||D W|
|Mullen Group||MTL||11.88||▼-0.8||11.84||16.93||26||D W|
|Secure Energy||SES||6.39||▼-5.1||6.33||9.82||25||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||32.68||▼-2.0||26.34||47.45||56↓||D W|
|Exxon Mobil||XOM||68.12||▼-0.7||67.67||89.30||42||D W|
|Kinder Morgan||KMI||15.57||▲0.1||14.69||19.83||63||D W|
|Williams Co||WMB||21.78||▼-0.3||21.55||33.67||35||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||87.26||▼-2.8||86.82||133.53||16||D W|
|Occidental Petro||OXY||59.98||▼-1.1||59.60||87.67||23||D W|
|Anadarko Petro||APC||42.95||▼-2.7||42.81||76.70||5||D W|
|Concho Res||CXO||99.85||▼-1.7||98.35||163.11||11||D W|
|Ntl-Oilwell Varco||NOV||25.24||▼-1.6||25.00||49.08||3||D W|
|Baker Hughes||BHGE||20.87||▲0.2||20.65||37.76||10||D W|
|Marathon Petro||MPC||56.74||▼-1.2||56.49||88.45||30||D W|
|Phillips 66||PSX||82.38||▼-0.5||81.64||123.97||24||D W|
|Valero Energy||VLO||71.64||▲1.5||70.01||126.98||13||D W|
Continental Resources (CLR): Upgraded from Neutral to Buy at Citigroup.
Cabot Oil & Gas (COG): Upgraded from Neutral to Buy at Citigroup.
Marathon Oil (MRO): Upgraded from Neutral to Buy at Citigroup.
Occidental Petroleum (OXY): Upgraded from Neutral to Overweight at Atlantic Securities.
Parsley Energy (PE): Upgraded from Neutral to Buy at Citigroup.
Western Gas Partners (WES): Downgraded from Buy to Hold at Stifel Nicolaus.
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.