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

Today's energy market summary:

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.

Editor’s note: The Daily Wrap will not be published over the next two weeks. Daily market summaries will resume on January 7, 2019.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$53.82▼1.053.82
 
86.29
WTI$45.59▼0.645.59
 
76.41
CDN LT$37.64▼0.820.83
 
69.32
C5+$41.84▼0.737.04
 
71.40
WCS$29.64▼1.012.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ DEC 21   █ DEC 14   █ DEC 7   █ NOV 30   (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 +2.3%)
  • Shawcor (SCL +2.2%)
  • Ensign Energy Svcs (ESI +2.1%)
  • TORC O&G (TOG +1.6%)
  • Tourmaline (TOU +1.1%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Altagas (ALA -5.6%)
  • Secure Energy (SES -5.1%)
  • Kelt Exploration (KEL -4.6%)
  • Advantage O&G (AAV -4.5%)
  • MEG Energy (MEG -4.4%)
  • 12-MO LOWS
  • Suncor Energy (SU -2.2%)
  • Husky Energy (HSE -4.3%)
  • Inter Pipeline (IPL +0.3%)
  • Keyera (KEY -3.9%)
  • Cdn Natural Res (CNQ -2.5%)
  • Cenovus Energy (CVE -1.5%)
  • Encana (ECA -2.8%)
  • Shawcor (SCL +2.2%)
  • Mullen Group (MTL -0.8%)
  • Secure Energy (SES -5.1%)
  • Altagas (ALA -5.6%)
  • Enerplus (ERF -3.8%)
  • Peyto Exploration (PEY -1.7%)
  • Baytex Energy (BTE -2.4%)
  • Gran Tierra (GTE -3.7%)
  • Paramount Res (POU -1%)
  • Precision Drilling (PD -3.3%)
  • 10-YR LOWS
  • Altagas (ALA -5.6%)
  • Peyto Exploration (PEY -1.7%)
  • Precision Drilling (PD -3.3%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU36.33▼-2.236.12
     
    55.4715D   W
    Imperial OilIMO34.66▲0.633.43
     
    44.9129D   W
    Husky EnergyHSE13.66▼-4.313.49
     
    22.9913D   W
    MIDSTREAM
    EnbridgeENB41.92▲0.137.36
     
    51.0481D   W
    TransCanadaTRP49.99▼-1.248.92
     
    62.2454D   W
    Pembina PipelinePPL40.27▼-2.137.60
     
    47.8449D   W
    Inter PipelineIPL19.30▲0.319.05
     
    26.3728D   W
    Keyera KEY25.45▼-3.925.37
     
    38.9116D   W
    Gibson EnergyGEI17.59▼-3.115.68
     
    23.3258D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ31.59▼-2.531.42
     
    49.0821D   W
    Cenovus EnergyCVE9.01▼-1.58.95
     
    14.8418D   W
    EncanaECA7.29▼-2.87.22
     
    18.543D   W
    TourmalineTOU16.41▲1.115.87
     
    26.1917D   W
    Vermilion EnergyVET28.41▼-0.726.90
     
    50.4613D   W
    SERVICES
    Pason SystemsPSI17.77▼-3.716.05
     
    24.5734D   W
    EnerflexEFX15.38▼-1.113.55
     
    18.7282D   W
    ShawcorSCL16.14▲2.215.59
     
    29.508D   W
    Mullen Group MTL11.88▼-0.811.84
     
    16.9326D   W
    Secure EnergySES6.39▼-5.16.33
     
    9.8225D   W
    REFINING & MARKETING
    Parkland FuelPKI32.68▼-2.026.34
     
    47.4556↓D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Cabot O&G (COG +1.7%)
  • Valero Energy (VLO +1.5%)
  • EQT Corp (EQT +0.7%)
  • TechnipFMC (FTI +0.5%)
  • Baker Hughes (BHGE +0.2%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Halliburton (HAL -4.8%)
  • Hess Corp (HES -4.6%)
  • Noble Energy (NBL -3.5%)
  • EOG Resources (EOG -2.8%)
  • Pioneer Natural Res (PXD -2.8%)
  • 12-MO LOWS
  • Exxon Mobil (XOM -0.7%)
  • Chevron (CVX -0.7%)
  • EOG Resources (EOG -2.8%)
  • Occidental Petro (OXY -1.1%)
  • Anadarko Petro (APC -2.7%)
  • Concho Res (CXO -1.7%)
  • Schlumberger (SLB -1.4%)
  • Halliburton (HAL -4.8%)
  • Ntl-Oilwell Varco (NOV -1.6%)
  • Baker Hughes (BHGE +0.2%)
  • TechnipFMC (FTI +0.5%)
  • Marathon Petro (MPC -1.2%)
  • Phillips 66 (PSX -0.5%)
  • Pioneer Natural Res (PXD -2.8%)
  • Marathon Oil (MRO -1.2%)
  • Apache (APA -1.6%)
  • Devon Energy (DVN -2.5%)
  • Noble Energy (NBL -3.5%)
  • Cimarex Energy (XEC -2.4%)
  • Helmerich & Payne (HP -2.1%)
  • 10-YR LOWS
  • Baker Hughes (BHGE +0.2%)
  • Apache (APA -1.6%)
  • Noble Energy (NBL -3.5%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM68.12▼-0.767.67
     
    89.3042D   W
    ChevronCVX104.21▼-0.7102.91
     
    133.8848D   W
    MIDSTREAM
    Kinder MorganKMI15.57▲0.114.69
     
    19.8363D   W
    Williams CoWMB21.78▼-0.321.55
     
    33.6735D   W
    ONEOKOKE53.90▼-1.151.28
     
    71.9935D   W
    LARGE CAP E&P
    ConocoPhillipsCOP59.80▼-0.350.18
     
    80.2456D   W
    EOG ResourcesEOG87.26▼-2.886.82
     
    133.5316D   W
    Occidental PetroOXY59.98▼-1.159.60
     
    87.6723D   W
    Anadarko PetroAPC42.95▼-2.742.81
     
    76.705D   W
    Concho ResCXO99.85▼-1.798.35
     
    163.1111D   W
    SERVICES
    SchlumbergerSLB35.70▼-1.435.23
     
    80.351D   W
    HalliburtonHAL25.85▼-4.825.56
     
    57.863D   W
    Ntl-Oilwell VarcoNOV25.24▼-1.625.00
     
    49.083D   W
    Baker HughesBHGE20.87▲0.220.65
     
    37.7610D   W
    TechnipFMCFTI19.17▲0.518.89
     
    35.006D   W
    REFINERS
    Marathon PetroMPC56.74▼-1.256.49
     
    88.4530D   W
    Phillips 66PSX82.38▼-0.581.64
     
    123.9724D   W
    Valero EnergyVLO71.64▲1.570.01
     
    126.9813D   W
    HollyFrontierHFC49.36▼-2.642.42
     
    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
  • Total (TOT -0.9%)
  • Eni (E -1.6%)
  • Equinor (EQNR -1.2%)
  • PetroChina (PTR -1.2%)
  • Sasol Limited (SSL -1.1%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A56.68▲0.456.27
     
    73.8615D   W
    TotalTOT51.78▼-0.951.48
     
    65.6956D   W
    BPBP37.67▲1.136.15
     
    47.8357D   W
    EniE30.74▼-1.630.51
     
    40.1552D   W
    EquinorEQNR20.75▼-1.220.65
     
    28.9334D   W
    ANALYST RATINGS

    UPGRADES

    • 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.

    DOWNGRADES

    • Western Gas Partners (WES): Downgraded from Buy to Hold at Stifel Nicolaus.


    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 continue to recover from the lows of late December

    Energy stocks continue to recover from the lows of late December

    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

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