Oil prices get a lift as US dollar takes a dive on Friday

Oil prices get a lift as US dollar takes a dive on Friday

Today's energy market summary:

  • Oil prices got a lift today, gaining on average 1% despite lingering geopolitical headwinds and an increase in US oil rig counts. Differentials on Canadian benchmarks were little changed.
  • After several weeks of declines, the US added 10 new oil rigs this week, while Canada gained another 18 rigs.
  • Henry Hub ended the week at US$3.18/MMBtu, gaining 2.5% for the day.
  • The US dollar retreated almost 1% on Friday, giving back all gains from this week and giving a boost to all other major currencies and most commodities.

Today in equity markets:

  • Global stock markets ended the week on a high note, with most posting gains for the day.
  • The S&P 500 rose almost 1%, with gains seen across most sectors, except for the more defensive utilities and staples sectors. The US energy sector rose 1.2%.
  • The TSX rose 0.6%, despite little change in the heavily-weighted energy and financials sectors. Energy services were the worst performers among Canada's energy names.

Today's notable energy news:

  • In its three-year outlook, Enerplus says Q4/18 production will be about 97,800 boe/day, weighted 55% liquids. The company has set a 2019 capital budget of about $600 million, assuming US$50 WTI, to be spent mostly in North Dakota. This year's production guidance was set at 94,000 to 100,000 boe/day, 9% higher than 2018. Enerplus says it plans to grow output by over 10% annually through 2021.
  • Enbridge says southbound natural gas flows on part of its Texas Eastern pipeline in Ohio will be restored by the middle of next week. Monday's blast has curtailed gas production out of the Marcellus and Utica shale basins.
  • Magellan Midstream Partners is reportedly mulling the construction of an offshore crude loading terminal in Freeport, Texas, instead of its previously location in Corpus Christi. The company says the Freeport location would be closer to its storage and terminal assets in Houston, but Corpus Christi isn't off the table just yet. Enbridge, Kinder Morgan and Oiltanking Partners recently announced plans to build a 2 million bbl/day loading facility, located 80 miles off the coast of Freeport.
  • German utility provider Uniper and ExxonMobil have signed a preliminary deal for a "substantial share" of regasification capacity at the planned Wilhelmshaven LNG terminal in Germany. If all goes according to plan, the 10 Bcm/yr facility will begin service by the end of 2022, and would be Germany's first LNG facility.
  • French utility provider Engie and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) are looking to raise as much as US$8B to purchase PetroBras' TAG natural gas pipeline network in Brazil. Petrobras was cleared to resume its asset sales earlier this month after the country's solicitor general lifted an injunction imposed by Brazil's Supreme Court last July.
  • Chesapeake Energy and WildHorse Resource Development (WRD) have set a January 30 deadline for (WRD) shareholders to tender their shares. The transaction is expected to close on February 1, 2019.
  • Peyto Exploration has received approvals from the TSX to buy back and cancel up to 12.4 million common shares over the next 12 months, representing 10% of the company's public float.
  • Noble Midstream Partners boosted its quarterly dividend 20%, to US$0.5858 per share.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$61.64▲0.950.47
 
86.29
WTI$53.69▲1.142.53
 
76.41
CDN LT$48.04▲1.220.83
 
69.32
C5+$49.64▲1.137.04
 
71.40
WCS$44.14▲0.812.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JAN 25   █ JAN 18   █ JAN 11   █ JAN 4   (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
  • MEG Energy (MEG +5.5%)
  • Keyera (KEY +2.5%)
  • Baytex Energy (BTE +2.3%)
  • Peyto Exploration (PEY +2.1%)
  • Pembina Pipeline (PPL +1.5%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Ensign Energy Svcs (ESI -2.8%)
  • Shawcor (SCL -2.7%)
  • Advantage O&G (AAV -2.6%)
  • Kelt Exploration (KEL -2.5%)
  • CES Energy (CEU -2.1%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU42.35▲0.135.53
     
    55.47D   W
    Imperial OilIMO36.99▲0.933.43
     
    44.91D   W
    Husky EnergyHSE15.99▲1.313.33
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB47.74▲0.437.36
     
    48.94D   W
    TransCanadaTRP55.33▲0.447.90
     
    59.51D   W
    Pembina PipelinePPL44.89▲1.537.60
     
    47.84D   W
    Inter PipelineIPL21.01▲0.318.60
     
    25.70D   W
    Keyera KEY27.47▲2.524.05
     
    38.91D   W
    Gibson EnergyGEI19.36▲1.215.68
     
    23.32D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ34.91▼-0.130.11
     
    49.08D   W
    Cenovus EnergyCVE10.28▲1.18.74
     
    14.84D   W
    EncanaECA9.24▼-0.26.90
     
    18.54D   W
    TourmalineTOU18.42▼-0.415.84
     
    26.19D   W
    Vermilion EnergyVET30.92▲1.526.67
     
    49.82D   W
    SERVICES
    Pason SystemsPSI20.37▼-1.616.05
     
    24.57D   W
    EnerflexEFX17.16▼-0.513.55
     
    18.72D   W
    Mullen Group MTL12.10▼-0.711.39
     
    16.93D   W
    ShawcorSCL19.34▼-2.715.11
     
    29.50D   W
    Secure EnergySES7.95▼-1.56.25
     
    9.82D   W
    REFINING & MARKETING
    Parkland FuelPKI36.35▲0.927.36
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • EQT Corp (EQT +5.7%)
  • Hess Corp (HES +4.1%)
  • Valero Energy (VLO +4.1%)
  • Ntl-Oilwell Varco (NOV +3.6%)
  • Cimarex Energy (XEC +3.3%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Chevron (CVX -0.3%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM71.72▲0.564.65
     
    89.30D   W
    ChevronCVX113.22▼-0.3100.22
     
    131.87D   W
    MIDSTREAM
    Kinder MorganKMI17.74▲1.514.62
     
    19.32D   W
    Williams CoWMB26.67▲0.620.36
     
    33.07D   W
    ONEOKOKE62.44▲1.150.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP66.99▲1.350.18
     
    80.24D   W
    EOG ResourcesEOG99.10▲1.982.04
     
    133.53D   W
    Occidental PetroOXY66.53▲2.456.83
     
    87.67D   W
    Anadarko PetroAPC46.89▲1.440.40
     
    76.70D   W
    Pioneer Natural ResPXD140.23▲1.4119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB45.00▲3.334.99
     
    79.09D   W
    HalliburtonHAL32.10▲2.924.70
     
    56.26D   W
    Baker HughesBHGE23.49▲2.020.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV30.44▲3.624.27
     
    49.08D   W
    TechnipFMCFTI23.30▲1.918.20
     
    34.88D   W
    REFINERS
    Marathon PetroMPC64.08▲1.554.29
     
    88.45D   W
    Phillips 66PSX93.02▲1.978.44
     
    123.97D   W
    Valero EnergyVLO82.19▲4.168.81
     
    126.98D   W
    HollyFrontierHFC55.06▲2.342.42
     
    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.A59.17▲0.655.04
     
    73.86D   W
    TotalTOT54.21▲1.649.70
     
    65.69D   W
    BPBP40.110.036.15
     
    47.83D   W
    EniE33.20▲1.829.75
     
    40.15D   W
    EquinorEQNR22.35▲0.819.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • Valero Energy (VLO): Upgraded from Sell to Neutral at Goldman Sachs.

    DOWNGRADES

    • Pason Systems (PSI.TO): Downgraded from Outperform to Sector Perform at National Bank.

    • PBF Energy (PBF): Downgraded from Neutral to Sell at Goldman Sachs.

    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
    Falling equity markets drag oil prices lower

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