WCS discount to WTI heads towards US$10 a barrel

WCS discount to WTI heads towards US$10 a barrel

Today's energy market summary:

  • After several days of large increases, Brent and WTI eked out a 0.4% gain on Thursday.
  • The WCS discount to WTI declined another US$0.70, ending the day at about US$10.20 a barrel.
  • Heating oil rose 1.4% while Henry Hub natural gas prices slipped 0.5%.
  • The US dollar recovered some of yesterday's losses, rising 0.4% for the day.

Today's energy market summary:

  • After several days of large increases, Brent and WTI eked out a 0.4% gain on Thursday.
  • The WCS discount to WTI declined another US$0.70, ending the day at about US$10.20 a barrel.
  • Heating oil rose 1.4% while Henry Hub natural gas prices slipped 0.5%.
  • The US dollar recovered some of yesterday's losses, rising 0.4% for the day.

Today's equity market action:

  • A relatively quiet Thursday in global stock markets with European and Chinese markets ending the day unchanged and most US markets rising about 0.5%. The Japanese Nikkei was today's only significant mover, falling 1.3%.
  • In Toronto, the TSX rose 0.7%, with the energy sector posting a 1.1% increase. Large cap producers and select energy services names posted the best gains for the day.
  • The S&P 500 rose 0.5%, including a 0.3% increase in the energy space.

Today's 2019 guidance forecasts:

  • Seven Generations Energy (VII.TO -2.6%) approved a 2019 capital budget of $1.25 billion, which is expected to be fully funded from operating cash flow at US$50 WTI. The company expects to average 200,000 boe/day this year, weighted 60% liquids, including 75,000 boe/day of condensate.
  • Bonterra Energy (BNE.TO +8.5%) has approved a 2019 capital budget range of $57 to $77 million, contingent on oil prices and differentials for Canadian crude. The company averaged 13,200 boe/day in 2018 and expects to average about 13,000 boe/day this year. Bonterra says although recent intervention from the Alberta government is helping, the country still needs additional export pipelines to be built "over the longer term."

Today's other notable energy news:

  • Enbridge (ENB.TO +0.4%) and Kinder Morgan (KMI +0.6%) are proposing to build an offshore oil export terminal near Freeport, Texas, capable of loading supertankers. The Texas Colt terminal, located about 40 miles offshore, could be in service by the end of 2021.
  • SemGroup (SEMG +1.1%) and investment firm KKR (KKR -1.7%) announced a deal to buy Meritage Midstream for $600 million. The new Canadian JV will be named SemCAMS Midstream, with ownership split 51% SemGroup and 49% KKR. Meritage's assets are focused in the Montney region and the Powder River Basin in Wyoming.
  • BP (BP 0.8%) says it plans to drill six new exploration wells in the Caspian Sea offshore Azerbaijan by 2020. The field has the potential to produce 26 Bcm/yr of natural gas.
  • Rowan Companies (RDC +0.3%) was awarded a 7-month contract offshore Norway by ConocoPhillips (COP +2.2%). Drilling is expected to begin in the second quarter.
  • Valero Energy (VLO +0.2%) closed on its merger with Valero Energy Partners (VLP). VLP stock was delisted from the NSYE on Thursday.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$61.68▲0.450.47
 
86.29
WTI$52.59▲0.442.53
 
76.41
CDN LT$49.44▲0.720.83
 
69.32
C5+$50.50▲0.637.04
 
71.40
WCS$42.43▲2.312.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JAN 10   █ JAN 3   █ DEC 27   █ DEC 20   (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
  • Pason Systems (PSI +4.3%)
  • PrairieSky (PSK +3.8%)
  • Birchcliff Energy (BIR +3.6%)
  • Vermilion Energy (VET +3.5%)
  • Secure Energy (SES +3.4%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Seven Generations (VII -2.6%)
  • Husky Energy (HSE -1.7%)
  • Tamarack Valley (TVE -1.6%)
  • Nuvista Energy (NVA -1.1%)
  • Crescent Point (CPG -1.1%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHARTS
    INTEGRATED
    Suncor EnergySU40.64▲0.235.53
     
    55.47D   W
    Imperial OilIMO35.42▲0.433.43
     
    44.91D   W
    Husky EnergyHSE15.03▼-1.713.33
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB45.90▲0.437.36
     
    50.37D   W
    TransCanadaTRP53.82▲1.947.90
     
    61.06D   W
    Pembina PipelinePPL43.76▼-0.237.60
     
    47.84D   W
    Inter PipelineIPL21.24▲1.418.60
     
    26.07D   W
    Keyera KEY28.13▲2.324.05
     
    38.91D   W
    Gibson EnergyGEI19.95▲0.915.68
     
    23.32D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.60▲1.530.11
     
    49.08D   W
    Cenovus EnergyCVE10.85▲1.28.74
     
    14.84D   W
    EncanaECA8.76▲2.56.90
     
    18.54D   W
    TourmalineTOU18.25▲2.115.84
     
    26.19D   W
    Vermilion EnergyVET31.56▲3.526.67
     
    50.46D   W
    SERVICES
    Pason SystemsPSI19.98▲4.316.05
     
    24.57D   W
    EnerflexEFX17.50▲3.013.55
     
    18.72D   W
    Mullen Group MTL12.43▼-0.311.39
     
    16.93D   W
    ShawcorSCL18.88▲2.215.11
     
    29.50D   W
    Secure EnergySES8.01▲3.46.25
     
    9.82D   W
    REFINING & MARKETING
    Parkland FuelPKI35.12▲0.126.73
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Hess Corp (HES +3.6%)
  • Halliburton (HAL +2.9%)
  • Cimarex Energy (XEC +2.6%)
  • ConocoPhillips (COP +2.2%)
  • Newfield Expl (NFX +2.1%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • TechnipFMC (FTI -1.1%)
  • Marathon Petro (MPC -0.9%)
  • EQT Corp (EQT -0.9%)
  • Diamondback (FANG -0.6%)
  • Exxon Mobil (XOM -0.5%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHARTS
    INTEGRATED
    Exxon MobilXOM72.05▼-0.564.65
     
    89.30D   W
    ChevronCVX113.45▲0.2100.22
     
    133.88D   W
    MIDSTREAM
    Kinder MorganKMI17.36▲0.614.62
     
    19.83D   W
    Williams CoWMB25.15▼0.020.36
     
    33.67D   W
    ONEOKOKE60.04▲0.550.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP67.94▲2.250.18
     
    80.24D   W
    EOG ResourcesEOG99.12▼-0.182.04
     
    133.53D   W
    Occidental PetroOXY66.19▲0.656.83
     
    87.67D   W
    Anadarko PetroAPC48.33▲0.940.40
     
    76.70D   W
    Pioneer Natural ResPXD145.24▼-0.4119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB41.65▲1.034.99
     
    80.35D   W
    HalliburtonHAL30.87▲2.924.70
     
    57.86D   W
    Baker HughesBHGE23.35▲0.820.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV28.76▲1.424.27
     
    49.08D   W
    TechnipFMCFTI22.68▼-1.118.20
     
    35.00D   W
    REFINERS
    Marathon PetroMPC63.63▼-0.954.29
     
    88.45D   W
    Phillips 66PSX92.94▲1.078.44
     
    123.97D   W
    Valero EnergyVLO77.42▲0.268.81
     
    126.98D   W
    HollyFrontierHFC53.32▲0.742.42
     
    83.28D   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
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHARTS
    Royal Dutch ShellRDS.A61.24▲0.555.04
     
    73.86D   W
    TotalTOT54.96▼-0.649.70
     
    65.69D   W
    BPBP40.70▲0.836.15
     
    47.83D   W
    EniE32.95▼-0.329.75
     
    40.15D   W
    EquinorEQNR22.86▼-0.319.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • Hess (HES): Upgraded from Equal Weight to Overweight at Barclays.

    • Superior Plus (SPB.TO): Upgraded from Neutral to Outperform at CIBC.

    DOWNGRADES

    • China Petroleum & Chemical (SNP): Downgraded from Outperform to Neutral at Credit Suisse.

    • Chinook Energy (CKE.TO): Downgraded from Speculative Buy to Hold at Canaccord Genuity.

    • Crescent Point Energy (CPG.TO): Downgraded from Buy to Speculative Buy at Canaccord Genuity.

    • Keane Group (FRAC): Downgraded from Buy to Hold at Jefferies.

    • Imperial Oil (IMO.TO): Downgraded from Buy to Hold at Canaccord Genuity.

    • NuStar Energy (NS): Downgraded from Buy to Neutral at UBS.

    • Nuvista Energy (NVA.TO): Downgraded from Buy to Speculative Buy at Canaccord Genuity.

    • Pengrowth Energy (PGF.TO): Downgraded from Hold to Sell at Canaccord Genuity.

    • Petrobras (PBR): Downgraded from Overweight to Underweight at Barclays.

    • Pine Cliff Energy (PNE.TO): Downgraded from Buy to Speculative Buy at Canaccord Genuity.

    • Superior Energy Services (SPN): Downgraded from Hold to Underperform at Jefferies.

    LATEST ENERGY NEWS

    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
    Oil prices take a breather after nine days of increases

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    Oil prices power higher as US dollar slides and OPEC cuts production

    Oil prices power higher as US dollar slides and OPEC cuts production

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