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

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

Today's energy market summary:

  • After waffling yesterday, OPEC and friends have agreed to remove 1.2 million bbl/day of crude from oil markets in the new year, as measured from October’s output. The cuts will be spilt 800,000 bbl/day for OPEC members and 400,000 bbl/day for non-OPEC producers, with Russia accounting for more than half of those volumes. This latest round of reductions will be in effect for six months.

  • The news helped boost oil prices, with both Brent and WTI recovering all of yesterday's losses. Brent gained 5% for the week, while WTI is up 3.3% from last Friday's close.

  • The differential on both WCS and Canadian Light narrowed by another US$1/bbl on Friday. The price of WCS rose over 8% to US$32.70 while Canadian Light gained another 5%, ending Friday at almost US$43/bbl. For the week, Canada's light and heavy benchmarks have each risen about 50%.

  • According to Baker Hughes, 10 oil rigs were taken out of service in the US this week, bringing the total to 877. Canada also lost 17 rigs, to a total of 102. In the natural gas space, 13 new rigs were put into service on both sides of the border this week.

Today's equity market action:

  • A general feeling of malaise continues to trouble North American equity markets, with most US markets once again posting big declines. 

  • The Dow Jones Industrial (DJIA) sank another 560 points (-2.2%), while the broader S&P 500 declined 2.3%, returning to the lows of late October. The Dow Transports (-3.9%) and tech-heavy Nasdaq (-3.1%) were the worst performers. 

  • The S&P 500 got the dreaded “death cross” on Friday. The DJIA is now the only US index whose short-term moving average (50-day) still sits above the long-term average (200-day).

  • Utilities stocks were the only gainers in US markets. Treasuries also posted gains, thanks to continued declines in bond yields.

  • In Toronto, the TSX slid another 1%, returning to the lows of late November.

  • The Canadian energy sector was the best performer on the TSX today, rising 1.1% thanks to big gains in heavy-weights Suncor Energy (SU.TO +2.0%), Husky Energy (HSE.TO +1.5%) and Canadian Natural Resources (CNQ.TO +2.7%). Canadian midstream stocks were the worst performers on Friday.

  • The SPX energy sector sank 0.6%, dragged lower by a big decline in refining stocks, despite a 3.7% increase in gasoline prices.

In other energy news:

  • Bellatrix Exploration (BXE.TO +2.7) says about 55% of its natural gas volumes are sold into the Dawn, Chicago and Malin markets, reducing its exposure to AECO prices. The company says it plans to release its 2019 capital budget and guidance sometime in January.

  • Norway's energy regulator has approved Equinor's (EQNR +0.8%) Troll Phase 3 development. The US$1 billion project is expected come online in the first half of 2021. Troll is Norway’s biggest gas producer, jointly owned by ConocoPhillips (COP -1.1%), Total (TOT -0.5%), Royal Dutch Shell (RDS.A +0.2%) and Norway's state-owned Petoro.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$61.67▲2.758.71
 
86.29
WTI$52.61▲2.250.29
 
76.41
CDN LT$42.80▲5.120.83
 
69.32
C5+$43.87▲2.937.04
 
71.40
WCS$32.66▲8.112.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ DEC 7   █ NOV 30   █ NOV 23   █ NOV 16   (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
  • Nuvista Energy (NVA +4.6%)
  • Parex Resources (PXT +3.7%)
  • Altagas (ALA +3.2%)
  • Seven Generations (VII +3.2%)
  • Tamarack Valley (TVE +2.9%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • TORC O&G (TOG -2.9%)
  • Advantage O&G (AAV -2.6%)
  • Inter Pipeline (IPL -2.5%)
  • Pembina Pipeline (PPL -2%)
  • Vermilion Energy (VET -1.7%)
  • 12-MO LOWS
  • TORC O&G (TOG -2.9%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU41.88▲2.040.49
     
    55.4722D   W
    Imperial OilIMO37.46▼-1.133.43
     
    44.9130D   W
    Husky EnergyHSE16.13▲1.515.30
     
    22.9921D   W
    MIDSTREAM
    EnbridgeENB42.43▼-1.037.36
     
    51.0474D   W
    TransCanadaTRP53.54▼-0.848.92
     
    63.2973D   W
    Pembina PipelinePPL43.26▼-2.037.60
     
    47.8463D   W
    Inter PipelineIPL20.92▼-2.520.68
     
    27.9230D   W
    Keyera KEY27.830.027.67
     
    38.9119D   W
    Gibson EnergyGEI19.58▲1.115.68
     
    23.3283D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.83▲2.732.08
     
    49.0832D   W
    Cenovus EnergyCVE10.16▼-0.79.03
     
    14.8419D   W
    EncanaECA8.55▼-0.78.46
     
    18.543D   W
    TourmalineTOU17.78▲0.117.34
     
    26.1915D   W
    Vermilion EnergyVET31.23▼-1.730.55
     
    50.4613D   W
    SERVICES
    Pason SystemsPSI19.20▼-0.916.05
     
    24.5742D   W
    EnerflexEFX15.98▲0.713.55
     
    18.7277D   W
    ShawcorSCL18.49▼-1.418.35
     
    29.5010D   W
    Mullen Group MTL12.35▼-0.112.04
     
    16.9321D   W
    Secure EnergySES7.10▲2.86.72
     
    9.8231D   W
    REFINING & MARKETING
    Parkland FuelPKI36.88▼-0.725.13
     
    47.4584D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • EQT Corp (EQT +2.3%)
  • Schlumberger (SLB +1.8%)
  • EOG Resources (EOG +1.5%)
  • Concho Res (CXO +1.3%)
  • ONEOK (OKE +1%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Valero Energy (VLO -3.6%)
  • TechnipFMC (FTI -3.2%)
  • Marathon Petro (MPC -3.1%)
  • Apache (APA -2.6%)
  • Phillips 66 (PSX -2.4%)
  • 12-MO LOWS
  • TechnipFMC (FTI -3.2%)
  • Valero Energy (VLO -3.6%)
  • Apache (APA -2.6%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM77.64▼-1.072.16
     
    89.3059D   W
    ChevronCVX115.49▼-0.4107.54
     
    133.8858D   W
    MIDSTREAM
    Kinder MorganKMI16.35▼-0.714.69
     
    19.8355D   W
    Williams CoWMB24.48▼-0.223.54
     
    33.6743D   W
    ONEOKOKE59.99▲1.051.28
     
    71.9946D   W
    LARGE CAP E&P
    ConocoPhillipsCOP65.91▼-1.150.08
     
    80.2458D   W
    EOG ResourcesEOG103.61▲1.596.54
     
    133.5342D   W
    Occidental PetroOXY66.54▼-0.362.47
     
    87.6725D   W
    Anadarko PetroAPC52.06▲0.946.80
     
    76.7014D   W
    Concho ResCXO122.41▲1.3117.74
     
    163.1133D   W
    SERVICES
    SchlumbergerSLB43.04▲1.741.87
     
    80.353D   W
    HalliburtonHAL29.68▼-0.329.24
     
    57.863D   W
    Ntl-Oilwell VarcoNOV29.81▼-1.529.73
     
    49.086D   W
    Baker HughesBHGE21.66▲0.921.05
     
    37.762D   W
    TechnipFMCFTI21.00▼-3.220.98
     
    35.002D   W
    REFINERS
    Marathon PetroMPC61.56▼-3.160.64
     
    88.4519D   W
    Phillips 66PSX90.35▼-2.488.99
     
    123.9721D   W
    Valero EnergyVLO75.99▼-3.675.55
     
    126.985D   W
    HollyFrontierHFC56.85▼-1.642.42
     
    83.2818D   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
  • Equinor (EQNR +0.8%)
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A59.31▲0.257.65
     
    73.8612D   W
    TotalTOT54.33▼-0.553.37
     
    65.6938D   W
    BPBP39.51▼-0.236.15
     
    47.8340D   W
    EniE31.75▲1.031.18
     
    40.1533D   W
    EquinorEQNR23.18▲0.819.91
     
    28.9337D   W
    ANALYST RATINGS

    UPGRADES

    • EOG Resources (EOG): Upgraded from Neutral to Overweight at JP Morgan.

    • Helmerich & Payne (HP): Upgraded from Sell to Neutral at Seaport Global Securities.

    DOWNGRADES

    • Carrizo Oil & Gas (CRZO): Downgraded from Neutral to Underweight at JP Morgan.

    • Chesapeake (CHK): Downgraded from Neutral to Underweight at JP Morgan.

    • Devon Energy (DVN): Downgraded from Overweight to Neutral at JP Morgan.

    • Gulfport Energy (GPOR): Downgraded from Overweight to Neutral at JP Morgan.

    • Halcon Resources (HK): Downgraded from Neutral to Underweight at JP Morgan.

    • HighPoint Resources (HPR): Downgraded from Overweight to Neutral at JP Morgan.

    • Matador Resources (MTDR): Downgraded from Overweight to Neutral at JP Morgan.

    • Extraction Oil & Gas (XOG): Downgraded from Overweight to Underweight at JP Morgan.


    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 pulled lower as Chinese trade data disappoints

    Oil prices pulled lower as Chinese trade data disappoints

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

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

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