OPEC's silence speaks volumes, sending oil prices sharply lower

OPEC's silence speaks volumes, sending oil prices sharply lower

Today's energy market summary:

  • OPEC surprised oil markets on Thursday by cancelling its scheduled press conference, leaving traders guessing on the magnitude of next year's production cuts. Another meeting is scheduled with Russia tomorrow, after which the cartel is expected to release a formal statement. Brent and WTI both sank about 2.5% on the news.

  • Differentials on Canadian oil all narrowed again today. The Canadian Light discount to WTI shrank by another US$3.50 a barrel, the WCS discount narrowed by US$1.50, while the C5+ discount fell by US$0.70/bbl.

  • According to the US Energy Information Administration (EIA), crude stockpiles declined sharply last week, mainly due to a 9 million barrel drop in the Gulf Coast. The EIA also reported a record volume of crude exports, surging to over 3 million bbl/day for the first time in US history. US imports of Canadian crude held steady at about 3.5 million bbl/day.

Today's equity market action:

  • Global bond yields continue to move lower, including Canadian bonds.

  • The loonie took another 1% haircut on Thursday, on a rather gloomy economic forecast from the Bank of Canada, lower commodity prices and fears of retaliation from the Chinese government due to the arrest of Huawei's CFO in Vancouver. 

  • Renewed fears of a trade war between China and the US sent equity markets sharply lower in the morning. However, markets recovered by the end of the day, with most US markets ending Thursday roughly unchanged.

  • In Toronto, the TSX declined over 400 points by lunch time, but recovered slightly before the closing bell, ending Thursday 1.6% lower.

  • The energy sector was again the worst performer in both Canada and the US, falling 5.4% on the TSX and 1.8% on the S&P 500, with almost every component posting losses for the day.

  • Energy ADRs listed on the NYSE also declined sharply on Thursday.

Today's notable energy news:

  • Western Energy Services (WRG.TO -6.0%) set a 2019 capital expenditure budget of $15 million, including $13 million of maintenance capital and $2 million set aside for expansion. The company says its expansion capital will be driven by "specific customer requirements."

  • Chevron (CVX -1.1%) set a US$20 billion capital and exploration budget for 2019, dedicated mostly to upstream spending. Over US$5 billion is being allocated to the Permian region and other US shale basins, with another US$4.3 billion dedicated to development of the "supergiant" Tengiz field in Kazakhstan. CEO Michael Wirth says more than two-thirds of next year's spending will be up and running within two years.

  • Williams Co (WMB -2.1%) has agreed to sell a number of small pipelines in the Gulf Coast to Houston-based Easton Energy for US$177 million in cash.

  • Azerbaijan's state-owned SOCAR has selected Honeywell (HON -0.8%) UOP’s Pressure Swing Adsorption (PSA) technology as part of the modernization of its Heydar Aliyev Oil Refinery in Baku. Honeywell will provide two PSA units, designed to supply "high-quality" hydrogen to the 120,000 bbl/day refinery. Financial terms of the deal were not disclosed.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$60.06▼2.458.71
 
86.29
WTI$51.49▼2.650.29
 
76.41
CDN LT$40.73▲5.520.83
 
69.32
C5+$42.63▼1.637.04
 
71.40
WCS$30.21▲0.312.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ DEC 6   █ NOV 29   █ NOV 22   █ NOV 15   (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
  • Trican Well Svc (TCW +4.8%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Cenovus Energy (CVE -7.7%)
  • Baytex Energy (BTE -7.4%)
  • Tamarack Valley (TVE -7.2%)
  • Suncor Energy (SU -6.7%)
  • Enerplus (ERF -6.4%)
  • 12-MO LOWS
  • Keyera (KEY -3.9%)
  • Encana (ECA -5.9%)
  • Tourmaline (TOU -4.4%)
  • Shawcor (SCL -1.6%)
  • Secure Energy (SES -1.6%)
  • PrairieSky (PSK -6%)
  • Altagas (ALA -3.9%)
  • Seven Generations (VII -3.7%)
  • ARC Resources (ARX -2.1%)
  • Parex Resources (PXT -3.9%)
  • Whitecap Res (WCP -3.3%)
  • Peyto Exploration (PEY -2.6%)
  • TORC O&G (TOG -4.3%)
  • Paramount Res (POU -1.4%)
  • Precision Drilling (PD -1.4%)
  • Nuvista Energy (NVA -3.9%)
  • Kelt Exploration (KEL -2.6%)
  • CES Energy (CEU -2%)
  • Tamarack Valley (TVE -7.2%)
  • Advantage O&G (AAV -4.2%)
  • 10-YR LOWS
  • Tourmaline (TOU -4.4%)
  • PrairieSky (PSK -6%)
  • Altagas (ALA -3.9%)
  • Seven Generations (VII -3.7%)
  • ARC Resources (ARX -2.1%)
  • Peyto Exploration (PEY -2.6%)
  • Precision Drilling (PD -1.4%)
  • Advantage O&G (AAV -4.2%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU41.08▼-6.740.49
     
    55.4721D   W
    Imperial OilIMO37.86▼-4.333.43
     
    44.9134D   W
    Husky EnergyHSE15.89▼-5.415.29
     
    22.9919D   W
    MIDSTREAM
    EnbridgeENB42.85▼-3.737.36
     
    51.0485D   W
    TransCanadaTRP53.96▼-2.548.92
     
    63.2978D   W
    Pembina PipelinePPL44.12▼-2.137.60
     
    47.8474D   W
    Inter PipelineIPL21.46▼-0.920.68
     
    27.9241D   W
    Keyera KEY27.83▼-3.927.67
     
    38.9118D   W
    Gibson EnergyGEI19.37▼-3.715.68
     
    23.3277D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.24▼-5.632.08
     
    49.0824D   W
    Cenovus EnergyCVE10.23▼-7.79.03
     
    14.8419D   W
    EncanaECA8.61▼-5.98.46
     
    18.543D   W
    TourmalineTOU17.76▼-4.417.34
     
    26.1915D   W
    Vermilion EnergyVET31.77▼-2.730.55
     
    50.4616D   W
    SERVICES
    Pason SystemsPSI19.37▼-0.216.05
     
    24.5743D   W
    EnerflexEFX15.87▼-1.713.55
     
    18.7276D   W
    ShawcorSCL18.76▼-1.618.35
     
    29.5011D   W
    Mullen Group MTL12.36▼-1.012.04
     
    16.9322↑D   W
    Secure EnergySES6.91▼-1.66.72
     
    9.8224D   W
    REFINING & MARKETING
    Parkland FuelPKI37.14▼-0.425.12
     
    47.4587D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Phillips 66 (PSX +1.3%)
  • Cabot O&G (COG +0.4%)
  • Marathon Petro (MPC +0.3%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • TechnipFMC (FTI -7.7%)
  • Cimarex Energy (XEC -6.8%)
  • Concho Res (CXO -5.9%)
  • Halliburton (HAL -5.3%)
  • Ntl-Oilwell Varco (NOV -4.4%)
  • 12-MO LOWS
  • Concho Res (CXO -5.9%)
  • Schlumberger (SLB -4.1%)
  • Halliburton (HAL -5.3%)
  • Ntl-Oilwell Varco (NOV -4.4%)
  • Baker Hughes (BHGE -2.9%)
  • TechnipFMC (FTI -7.7%)
  • Pioneer Natural Res (PXD -2%)
  • Apache (APA -3.3%)
  • Noble Energy (NBL -2.1%)
  • Diamondback (FANG -3.1%)
  • Cimarex Energy (XEC -6.8%)
  • 10-YR LOWS
  • Baker Hughes (BHGE -2.9%)
  • DEATH CROSSES
  • HollyFrontier (HFC -0.5%)
  • Marathon Oil (MRO -3.6%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM78.39▼-1.372.16
     
    89.3055D   W
    ChevronCVX115.91▼-1.1107.54
     
    133.8853↓D   W
    MIDSTREAM
    Kinder MorganKMI16.46▼-1.314.69
     
    19.8352D   W
    Williams CoWMB24.53▼-2.123.54
     
    33.6740D   W
    ONEOKOKE59.37▼-2.051.28
     
    71.9935D   W
    LARGE CAP E&P
    ConocoPhillipsCOP66.61▼-0.550.08
     
    80.2456D   W
    EOG ResourcesEOG102.13▼-1.996.54
     
    133.5331D   W
    Occidental PetroOXY67.52▼-3.162.47
     
    87.6719D   W
    Anadarko PetroAPC51.59▼-2.646.80
     
    76.7010D   W
    Concho ResCXO120.82▼-5.9117.74
     
    163.1123D   W
    SERVICES
    SchlumbergerSLB42.32▼-4.141.87
     
    80.351D   W
    HalliburtonHAL29.79▼-4.729.24
     
    57.862D   W
    Ntl-Oilwell VarcoNOV30.27▼-4.429.73
     
    49.085D   W
    Baker HughesBHGE21.47▼-2.921.05
     
    37.761D   W
    TechnipFMCFTI21.69▼-7.721.32
     
    35.002D   W
    REFINERS
    Marathon PetroMPC63.55▲0.360.64
     
    88.4520D   W
    Phillips 66PSX92.60▲1.388.99
     
    123.9721D   W
    Valero EnergyVLO78.84▼-0.876.25
     
    126.986D   W
    HollyFrontierHFC57.80▼-0.642.42
     
    83.2816D   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 -2.5%)
  • Eni (E -3.0%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A59.19▼-2.557.65
     
    73.869D   W
    TotalTOT54.59▼-1.653.37
     
    65.6936D   W
    BPBP39.59▼-3.336.15
     
    47.8336D   W
    EniE31.44▼-3.031.18
     
    40.1526D   W
    EquinorEQNR23.00▼-4.019.91
     
    28.9330D   W
    ANALYST RATINGS

    UPGRADES

    • None

    DOWNGRADES

    • None


    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.
    OPEC comes to the rescue, giving a boost to oil markets

    OPEC comes to the rescue, giving a boost to oil markets

    Canadian Light gains almost 10% as discount to WTI falls below US$15 a barrel

    Canadian Light gains almost 10% as discount to WTI falls below US$15 a barrel

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