WCS triples from November lows as oil prices post seventh day of gains

WCS triples from November lows as oil prices post seventh day of gains

Today's energy market summary:

  • Oil prices posted their seventh day of gains, thanks to an improved outlook for US/China trade relations and anticipated drawdowns in US crude stockpiles.
  • Both Brent and WTI rose about 2.5%, while Canadian Light and Edmonton Condensate (C5+) gained almost 3%.
  • Western Canadian Select (WCS) posted another 4% gain on Tuesday. WCS prices have now tripled from the lows of mid-November.
  • The American Petroleum Institute (API) is forecasting a 6.3 million barrel drawdown in US crude oil inventories for the week ending January 4. Gasoline and distillate inventories are expected to post another 15 million barrel build, while crude stockpiles in Cushing are expected to show a small increase. Official numbers from the EIA are due to be released Wednesday morning.

Today's equity market action:

  • Except for Chinese markets, most global indices posted gains on Tuesday. Small cap stocks and the Dow Transports were the most improved for the day, rising over 1.5%. The S&P 500 rose 1% while the TSX posted a 0.7% gain.
  • Large cap producers, midstream and integrated stocks mostly posted gains on the TSX, offsetting losses among smaller producers. The TSX energy sector was roughly unchanged for the say.
  • The SPX energy sector rose 0.8%. Except for Chevron (CVX -0.4%) and select refining stocks, gains were seen across most subsectors.

Today's notable energy news:

  • Husky Energy (HSE.TO +1.8%) announced plans to find a buyer for its 12,000 bbl/day Prince George Refinery and over 500 Canadian retail and fuel distribution outlets. The company says it wants to focus on its core businesses and this divestiture is not contingent on its $6.4 billion takeover of MEG Energy (MEG.TO +2.3%).
  • TransCanada (TRP +1.5%) says it hopes to start construction on Keystone XL by June. Under the current schedule, some pre-construction activities need to resume by February, allowing construction to begin in the summer, and be completed by the end of 2020. A hearing is scheduled for next week, but could be delayed due to the ongoing government shutdown.
  • BP (BP -0.3%) has approved a US$1.3 billion expansion of the Atlantis field in the US Gulf of Mexico (GoM), thanks to the discovery of an additional 400 million barrels in the region. The UK oil major also announced two new discoveries in the region, and added another 1 billion barrels to its Thunder Horse reserves. BP says it expects to grow GoM output to about 400,000 bbl/day by 2025, up from the current 300,000 bbl/day. Atlantis is jointly owned with Australia's BHP (BHP -0.3%), who has yet to formally sanction the expansion.
  • Teekay Offshore Partners (TOO +5%) reduced its quarterly dividend from $0.01 per share to zero, in an effort to "further strengthen its balance sheet."
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$58.72▲2.450.47
 
86.29
WTI$49.78▲2.642.53
 
76.41
CDN LT$46.28▲2.820.83
 
69.32
C5+$47.61▲2.937.04
 
71.40
WCS$38.50▲4.112.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JAN 8   █ DEC 31   █ DEC 24   █ DEC 18   (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 +2.3%)
  • Encana (ECA +2.2%)
  • Pason Systems (PSI +2%)
  • Enerflex (EFX +1.9%)
  • Husky Energy (HSE +1.8%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Nuvista Energy (NVA -4.6%)
  • PrairieSky (PSK -4.3%)
  • Tamarack Valley (TVE -4.1%)
  • ARC Resources (ARX -3.7%)
  • Kelt Exploration (KEL -3.5%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHARTS
    INTEGRATED
    Suncor EnergySU39.70▲0.535.53
     
    55.47D   W
    Imperial OilIMO35.20▲1.133.43
     
    44.91D   W
    Husky EnergyHSE14.88▲1.813.33
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB45.37▲1.837.36
     
    50.89D   W
    TransCanadaTRP52.79▲1.547.90
     
    61.69D   W
    Pembina PipelinePPL43.01▲1.537.60
     
    47.84D   W
    Inter PipelineIPL20.35▼-0.718.60
     
    26.37D   W
    Keyera KEY27.39▼-1.224.05
     
    38.91D   W
    Gibson EnergyGEI19.75▲0.115.68
     
    23.32D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ34.53▲0.230.11
     
    49.08D   W
    Cenovus EnergyCVE10.46▲1.28.74
     
    14.84D   W
    EncanaECA8.51▲2.26.90
     
    18.54D   W
    TourmalineTOU17.79▼-0.215.84
     
    26.19D   W
    Vermilion EnergyVET29.88▼-2.726.67
     
    50.46D   W
    SERVICES
    Pason SystemsPSI18.91▲2.016.05
     
    24.57D   W
    EnerflexEFX16.45▲1.913.55
     
    18.72D   W
    Mullen Group MTL12.41▼-1.011.39
     
    16.93D   W
    ShawcorSCL18.16▲0.715.11
     
    29.50D   W
    Secure EnergySES7.47▲1.86.25
     
    9.82D   W
    REFINING & MARKETING
    Parkland FuelPKI34.62▲0.926.70
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Concho Res (CXO +3.8%)
  • Newfield Expl (NFX +3.5%)
  • Kinder Morgan (KMI +3.4%)
  • EQT Corp (EQT +3.3%)
  • Williams Co (WMB +3%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • HollyFrontier (HFC -1%)
  • Marathon Oil (MRO -1%)
  • Chevron (CVX -0.4%)
  • Noble Energy (NBL -0.4%)
  • Pioneer Natural Res (PXD -0.1%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHARTS
    INTEGRATED
    Exxon MobilXOM72.04▲0.764.65
     
    89.30D   W
    ChevronCVX111.77▼-0.4100.22
     
    133.88D   W
    MIDSTREAM
    Kinder MorganKMI17.14▲3.414.62
     
    19.83D   W
    Williams CoWMB24.87▲3.020.36
     
    33.67D   W
    ONEOKOKE58.87▲2.250.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP64.32▲1.350.18
     
    80.24D   W
    EOG ResourcesEOG95.52▲1.182.04
     
    133.53D   W
    Occidental PetroOXY64.99▲0.856.83
     
    87.67D   W
    Anadarko PetroAPC47.34▲0.740.40
     
    76.70D   W
    Pioneer Natural ResPXD142.20▼-0.1119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB40.67▲1.234.99
     
    80.35D   W
    HalliburtonHAL29.20▲1.324.70
     
    57.86D   W
    Baker HughesBHGE23.21▲2.920.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV27.96▲0.924.27
     
    49.08D   W
    TechnipFMCFTI22.33▲2.918.20
     
    35.00D   W
    REFINERS
    Marathon PetroMPC62.87▲1.054.29
     
    88.45D   W
    Phillips 66PSX91.39▼-0.178.44
     
    123.97D   W
    Valero EnergyVLO77.36▲0.468.81
     
    126.98D   W
    HollyFrontierHFC51.82▼-1.042.42
     
    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.A60.26▼-0.655.04
     
    73.86D   W
    TotalTOT54.19▼-0.349.70
     
    65.69D   W
    BPBP40.03▼-0.336.15
     
    47.83D   W
    EniE32.44▼-1.229.75
     
    40.15D   W
    EquinorEQNR22.58▲0.419.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • Targa Resources (TRGP): Upgraded from Neutral to Overweight at JPMorgan Chase.

    DOWNGRADES

    • Denbury Resources (DNR): Downgraded from Accumulate to Hold at Johnson Rice.

    • Devon Energy (DVN): Downgraded from Buy to Accumulate at Johnson Rice.

    • Freehold Royalities (FRU.TO): Downgraded from Outperform to Market Perform at BMO.

    • Oasis Petroleum (OAS): Downgraded from Hold to Buy at Stifel Nicolaus.

    • Paramount Resources (POU.TO): Downgraded from Outperform to Market Perform at BMO.

    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 power higher as US dollar slides and OPEC cuts production

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

    Energy stocks continue to recover from the lows of late December

    Energy stocks continue to recover from the lows of late December

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