WCS discount falls below US$9 for the first time since spring 2017

WCS discount falls below US$9 for the first time since spring 2017

Today's energy market summary:

  • Oil prices continue to tread water, gaining over 2% on Tuesday, and reversing most of Monday's losses. Both Brent and WTI have been stuck in a very narrow trading range for much of January.
  • The heavy oil discount narrowed significantly on Tuesday, ending the day just below US$9/bbl. The discounts on Canadian Light and Edmonton Condensate (C5+) were unchanged.
  • Heating oil was the big winner in energy commodities, rising over 3% for the day. Gasoline and US natural gas prices also gained over 1%.

Today's equity market action:

  • Except for the Nasdaq, most US markets were roughly unchanged on Tuesday.
  • The S&P 500 dipped 0.2%, while the TSX gained 0.6%, thanks to higher commodity prices.
  • The Canadian energy sector gained almost 1%, with midstream stocks and producers leading to the upside. In US markets, the energy sector rose 0.3%.

Today's notable energy news:

  • TransCanada has hired RBC Capital Markets to sell up to 75% of its $6.2 billion Coastal GasLink project, a natural gas gathering network in northern BC which will supply the LNG Canada export terminal in Kitimat. The project faces major opposition from various special interest groups, while its provincial approval is still under review by the National Energy Board.
  • CN Rail reported a 50% increase in revenues from the transport of petroleum and chemicals, rising to $815 million in the fourth quarter. Crude oil shipments rose to 232,000 bbl/day in Q4 and 133,000 bbl/day for the full year 2018. The company says demand remains strong, but it will be negatively impacted in Q1 by the province's mandated production cuts. CN also boosted its dividend 18% and announced plans to buyback 22 million shares.
  • ExxonMobil confirmed a major expansion of its Beaumont Refinery, adding 250,000 bbl/day of light oil processing capacity. The company says a third Crude Distillation Unit will be operational by 2022, increasing its ability to process light oil from the Permian. Once completed, total capacity at Beaumont rises to about 620,000 bbl/day, making it the largest refinery in the US.
  • According to Reuters, Chevron has agreed to buy Petrobras' 112,000 bbl/day Pasadena refinery in Texas. Petrobras bought the refinery in 2008 and has since invested more than US$1 billion in upgrades. The company put the facility up for sale early last year as part of its US$21 billion divestiture program. Neither Chevron or Petrobras have confirmed the deal.
  • UK offshore driller firm Ensco upped its all-stock bid for Houston-based Rowan Companies by 24% over its original offer. The company says the merger will save it US$165 million annually in expenses. Both boards have approved the deal, which is still subject to shareholder approval.
  • CNOOC announced the discovery of natural gas and condensate in the Glengorm field, located in the UK North Sea. The field is estimated to hold 250 million barrels of oil equivalent, which would make it the largest UK discovery in more than a decade. The company plans more drilling to determine the productivity of the reservoir. The field is jointly owned with Total and Euroil.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$61.32▲2.350.47
 
86.29
WTI$53.31▲2.542.53
 
76.41
CDN LT$49.06▲2.820.83
 
69.32
C5+$49.26▲2.837.04
 
71.40
WCS$44.46▲5.612.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JAN 29   █ JAN 22   █ JAN 15   █ JAN 8   (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
  • Seven Generations (VII +3.9%)
  • Keyera (KEY +2.9%)
  • Peyto Exploration (PEY +2.8%)
  • Parex Resources (PXT +2.8%)
  • Vermilion Energy (VET +2.2%)
  • 12-MO HIGHS
  • Enbridge (ENB +1.1%)
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Precision Drilling (PD -3.2%)
  • Secure Energy (SES -1.8%)
  • Baytex Energy (BTE -1.4%)
  • Pason Systems (PSI -1.4%)
  • Whitecap Res (WCP -0.9%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU42.50▲0.735.53
     
    55.47D   W
    Imperial OilIMO36.60▼-0.433.43
     
    44.91D   W
    Husky EnergyHSE15.58▲0.113.33
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB48.34▲1.137.36
     
    48.50D   W
    TransCanadaTRP56.05▲1.547.90
     
    59.51D   W
    Pembina PipelinePPL45.67▲0.637.60
     
    47.84D   W
    Inter PipelineIPL21.20▲0.818.60
     
    25.66D   W
    Keyera KEY28.24▲2.924.05
     
    38.91D   W
    Gibson EnergyGEI19.52▲0.415.68
     
    23.32D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.33▲1.630.11
     
    49.08D   W
    Cenovus EnergyCVE10.46▲1.58.74
     
    14.84D   W
    EncanaECA9.12▼-0.76.90
     
    18.54D   W
    TourmalineTOU18.12▲0.615.84
     
    26.19D   W
    Vermilion EnergyVET31.76▲2.226.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI20.19▼-1.416.05
     
    24.57D   W
    EnerflexEFX16.99▼-0.413.55
     
    18.72D   W
    Mullen Group MTL12.09▼-0.311.39
     
    16.93D   W
    ShawcorSCL20.01▲1.215.11
     
    29.02D   W
    Secure EnergySES7.75▼-1.86.25
     
    9.51D   W
    REFINING & MARKETING
    Parkland FuelPKI35.80▼-0.327.36
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Noble Energy (NBL +3.7%)
  • Helmerich & Payne (HP +2.8%)
  • Apache (APA +2.5%)
  • EQT Corp (EQT +2.2%)
  • ONEOK (OKE +2.1%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Halliburton (HAL -1.2%)
  • Newfield Expl (NFX -0.8%)
  • Ntl-Oilwell Varco (NOV -0.6%)
  • Schlumberger (SLB -0.5%)
  • 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 MobilXOM71.51▲0.464.65
     
    89.30D   W
    ChevronCVX111.83▼-0.3100.22
     
    131.58D   W
    MIDSTREAM
    Kinder MorganKMI18.05▲0.914.62
     
    18.83D   W
    Williams CoWMB26.68▲0.420.36
     
    32.47D   W
    ONEOKOKE63.60▲2.150.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP65.30▼-0.150.18
     
    80.24D   W
    EOG ResourcesEOG98.87▲0.882.04
     
    133.53D   W
    Occidental PetroOXY66.48▲0.656.83
     
    87.67D   W
    Anadarko PetroAPC46.46▲0.040.40
     
    76.70D   W
    Pioneer Natural ResPXD140.20▲0.4119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB44.00▼-0.534.99
     
    77.41D   W
    HalliburtonHAL30.85▼-1.224.70
     
    55.60D   W
    Baker HughesBHGE23.16▲0.820.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV29.78▼-0.624.27
     
    49.08D   W
    TechnipFMCFTI23.02▲0.818.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC64.14▲0.754.29
     
    88.45D   W
    Phillips 66PSX93.35▲0.978.44
     
    123.97D   W
    Valero EnergyVLO81.14▲0.168.81
     
    126.98D   W
    HollyFrontierHFC54.10▲0.942.42
     
    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.A58.84▲0.455.04
     
    73.86D   W
    TotalTOT54.07▲0.949.70
     
    65.69D   W
    BPBP40.20▲1.636.15
     
    47.83D   W
    EniE33.30▲0.829.75
     
    40.15D   W
    EquinorEQNR22.19▲0.919.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • Concho Resources (CXO): Upgraded from Equal Weight to Overweight at Stephens.

    • Parsley Energy (PE): Upgraded from Equal Weight to Overweight at Stephens.

    • RPC (RES): Upgraded from Neutral to Buy at Seaport Global Securities.

    • Targa Resources (TRGP): Upgraded from Neutral to Buy at Seaport Global Securities.

    DOWNGRADES

    • Gulfport Energy (GPOR): Downgraded from Buy to Neutral at Guggenheim.

    • Hess (HES): Downgraded from Overweight to Equal Weight at Stephens.

    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 get a lift from rising stock markets, falling US dollar and flatlining US output

    Oil prices get a lift from rising stock markets, falling US dollar and flatlining US output

    Falling equity markets drag oil prices lower

    Falling equity markets drag oil prices lower

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