Canadian benchmarks take a haircut on February contract expiry

Canadian benchmarks take a haircut on February contract expiry

Today's energy market summary:

  • Brent and WTI dipped slightly on Thursday, but managed to hold above their key US$60/$50 support levels.
  • Canadian benchmarks all posted losses due to yesterday's expiry of the February contract. March contract differentials for Canadian Light and WCS both widened by about US$2.50 a barrel, to US$5.65 and about US$12, respectively.
  • The discount on Edmonton Condensate also widened, sending C5+ prices down 4%.
  • Wholesale gasoline prices edged up another 1% on Thursday, ending the day up 15% from the lows of Christmas Eve.
  • After a very volatile week, Henry Hub rose about 1%, while AECO gas prices were unchanged for the day.
  • In its January Oil Market Report, OPEC says it produced an estimated 31.6 million bbl/day in December, down 751,000 bbl/day from the previous month.

Today's equity market action:

  • North American equity markets mostly posted gains on Thursday on news that the US has backed off from plans to levy more tariffs against Chinese goods.
  • The S&P 500 rose 0.8% while the TSX increased 0.7%. Gains were led by the more offensive sectors.
  • The Canadian energy sector rose 0.4%, while US counterparts gained 1%, with gains posted across most subsectors.

Today's notable energy news:

  • MEG Energy shares plunged 36% after Husky Energy walked away from its hostile bid to takeover the firm. Husky says it failed to garner enough support for the deal, and the business climate in Alberta has deteriorated considerably since the offer was first announced last fall. Husky says it remains committed to maintaining a strong balance sheet and returning cash to its shareholders through dividend payouts. HSE shares rose 12% for the day.
  • According to Bloomberg, Kinder Morgan is looking to sell its carbon dioxide business, estimated to be worth US$5 billion. Kinder Morgan is North America's largest transporter of carbon dioxide, collected from underground deposits and used primarily for enhanced oil recovery in older oil fields.
  • US federal regulators (FERC) have cleared TransCanada to begin service on another section of its 2.7 Bcf/day Mountaineer Xpress pipeline in West Virginia. To date, FERC has approved service on 113 out of 165 miles of piping.
  • Schlumberger was awarded a drilling contract with Equinor offshore Brazil, estimated to be worth at least US$200 million.
  • Brazil's solicitor general has lifted an injunction that prevented Petrobras from selling its Transportadora Associada de Gas (TAG) natural gas network. The company had been in talks with France's Engie to sell its 90% stake in TAG, worth an estimated US$7 billion.
  • The government of East Timor has approved a US$650 million taxpayer buyout of both ConocoPhillips' and Royal Dutch Shell's stake in the Greater Sunrise Project. The government now owns a majority of the offshore gas field, along with Australia's Woodside Petroleum and Japan's Osaka Gas. The field holds an estimated 5.1 Tcf/day of gas, but development has been stalled due to a territorial dispute between Australia and East Timor.
  • EQT Midstream Partners raised its quarterly dividend 1% to $1.13 per share.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$61.18▼0.250.47
 
86.29
WTI$52.07▼0.542.53
 
76.41
CDN LT$46.42▼5.420.83
 
69.32
C5+$48.32▼3.837.04
 
71.40
WCS$40.12▼6.512.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JAN 17   █ JAN 10   █ JAN 3   █ DEC 27   (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
  • Husky Energy (HSE +12.4%)
  • Crescent Point (CPG +4.5%)
  • Mullen Group (MTL +3.3%)
  • Gran Tierra (GTE +2.8%)
  • Vermilion Energy (VET +2.2%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • MEG Energy (MEG -35.6%)
  • Peyto Exploration (PEY -10.7%)
  • Tamarack Valley (TVE -5.9%)
  • Baytex Energy (BTE -3%)
  • Trican Well Svc (TCW -2.2%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU41.55▲1.935.53
     
    55.47D   W
    Imperial OilIMO36.95▲0.933.43
     
    44.91D   W
    Husky EnergyHSE17.45▲12.413.33
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB47.38▲0.337.36
     
    49.68D   W
    TransCanadaTRP54.96▲0.547.90
     
    60.22D   W
    Pembina PipelinePPL44.94▲1.737.60
     
    47.84D   W
    Inter PipelineIPL21.27▲0.618.60
     
    25.88D   W
    Keyera KEY28.25▲1.724.05
     
    38.91D   W
    Gibson EnergyGEI19.92▲0.715.68
     
    23.32D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ36.41▼-0.530.11
     
    49.08D   W
    Cenovus EnergyCVE10.69▲1.08.74
     
    14.84D   W
    EncanaECA9.20▲0.96.90
     
    18.54D   W
    TourmalineTOU18.69▲0.815.84
     
    26.19D   W
    Vermilion EnergyVET33.01▲2.226.67
     
    50.46D   W
    SERVICES
    Pason SystemsPSI21.02▲1.716.05
     
    24.57D   W
    EnerflexEFX17.29▼-0.413.55
     
    18.72D   W
    Mullen Group MTL12.90▲3.311.39
     
    16.93D   W
    ShawcorSCL18.71▲0.715.11
     
    29.50D   W
    Secure EnergySES8.12▲1.96.25
     
    9.82D   W
    REFINING & MARKETING
    Parkland FuelPKI36.90▼-0.527.36
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • HollyFrontier (HFC +3.3%)
  • Anadarko Petro (APC +2.7%)
  • Marathon Petro (MPC +2.3%)
  • EQT Corp (EQT +2.2%)
  • Baker Hughes (BHGE +2.2%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Cimarex Energy (XEC -0.9%)
  • Pioneer Natural Res (PXD -0.2%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM72.13▲0.764.65
     
    89.30D   W
    ChevronCVX111.96▲0.5100.22
     
    132.80D   W
    MIDSTREAM
    Kinder MorganKMI17.72▲1.414.62
     
    19.71D   W
    Williams CoWMB26.16▲1.220.36
     
    33.67D   W
    ONEOKOKE61.90▲1.250.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP67.06▲2.150.18
     
    80.24D   W
    EOG ResourcesEOG99.05▲0.482.04
     
    133.53D   W
    Occidental PetroOXY65.83▲1.156.83
     
    87.67D   W
    Anadarko PetroAPC48.05▲2.740.40
     
    76.70D   W
    Pioneer Natural ResPXD143.27▼-0.2119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB41.37▲0.334.99
     
    80.35D   W
    HalliburtonHAL30.90▲1.824.70
     
    57.86D   W
    Baker HughesBHGE23.65▲2.220.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV29.79▲1.524.27
     
    49.08D   W
    TechnipFMCFTI23.27▲1.018.20
     
    34.97D   W
    REFINERS
    Marathon PetroMPC65.79▲2.354.29
     
    88.45D   W
    Phillips 66PSX93.42▲0.578.44
     
    123.97D   W
    Valero EnergyVLO80.49▲1.968.81
     
    126.98D   W
    HollyFrontierHFC55.08▲3.342.42
     
    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 CHART
    Royal Dutch ShellRDS.A60.18▲0.355.04
     
    73.86D   W
    TotalTOT53.76▲0.349.70
     
    65.69D   W
    BPBP40.13▲0.036.15
     
    47.83D   W
    EniE32.67▲0.429.75
     
    40.15D   W
    EquinorEQNR22.41▲0.819.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • Halliburton (HAL): Upgraded from Market Perform to Outperform at Cowen.

    DOWNGRADES

    • Peyto Exploration & Development (PEY): Downgraded from Outperform to Market Perform at Raymond James.

    • Patterson-UTI energy (PTEN): Downgraded from Overweight to Neutral at JPMorgan.

    • Superior Energy Services (SPN): Downgraded from Outperform to Market Perform at Cowen.

    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 end Friday on a high note as China offers to buy billions in US exports

    Oil prices end Friday on a high note as China offers to buy billions in US exports

    WCS returns to the highs of last September, as heavy oil discount dips to US$9.40 a barrel

    WCS returns to the highs of last September, as heavy oil discount dips to US$9.40 a barrel

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