Oil prices dip despite lower output from Russia and Venezuelan crude stranded at sea

Oil prices dip despite lower output from Russia and Venezuelan crude stranded at sea

Today's energy market summary:

  • Despite reports of stranded Venezuelan crude in the Gulf of Mexico and lower output from Russia, oil prices retreated slightly on Monday.
  • WTI fell below US$55 a barrel (-1.3%), while Brent dipped 0.4% to US$62.50.
  • Differentials for Canadian benchmarks were little changed. WCS and Canadian Light fell about 2%, while Edmonton Condensate (C5+) gave back about 1%.
  • Russia says it has made good on its promise to reduce output this year. The country's energy minister claims production decreased by 47,000 bbl/day in January, versus last October's level.
  • Gasoline and heating oil dipped slightly for the day, while Henry Hub declined almost 2%.

Today's equity, treasury and currency market action:

  • Except for Canada, most global bond yields moved slightly higher on Monday. The US dollar moved up 0.3%, sending other global currencies lower.
  • Most global markets kicked-off the week in the positive. Today's best performer was the NASDAQ (+1.2%), while European markets were roughly unchanged. Chinese markets will be closed for most of the week due to Lunar New Year celebrations.
  • In Toronto, the TSX gained 0.6%, with cannabis stocks leading to the upside. The S&P 500 rose 0.7%, with technology and industrial stocks leading the gains.
  • The Canadian energy sector gained 1.2%, as producers and large-cap integrated names recovered some of the losses from last week. Crescent Point touched a new multi-year low, while Enbridge touched a new 52-week high. Oilfield services was the worst performing subsector.
  • The US energy sector gained just 0.2%, dragged lower by ExxonMobil, Occidental Petroleum and Valero Energy. Most other energy names posted gains for the day.

Today's notable energy news:

  • Pembina Pipeline and Kuwait's Petrochemical Industries Company have sanctioned their 550,000 t/y integrated propane dehydrogenation plant and polypropylene upgrading facility. The $4.5 billion facility will be located next to Pembina's Redwater fractionation complex in Sturgeon County, Alberta.
  • Canadian Natural Resources says it will commence the repurchase of up to 61.4 million CNQ shares this week, to be executed over the next 13 months. The company says it believes share buybacks are an "effective use of capital and an efficient means to return value to its shareholders."
  • Valero Energy and Chevron have been blocked from receiving Venezuelan crude shipments, even though the shipments were booked before US sanctions were imposed at the end of January. US refineries are technically allowed to purchase Venezuelan crude during the "wind-down" period that extends to the end of April. However, sanctions currently prohibit US companies from transferring funds to the country's state-owned producer, PDVSA.
  • Water treatment firm Ecolab announced plans to spin off its upstream energy business as a stand-alone publicly-traded company. The division will include its Oil Field Chemicals production division, as well as its drilling and well completion chemistry business. Net proceeds will be paid out to Ecolab shareholders in the form of a dividend. The transaction is expected to be completed by the middle of 2020.
  • Engineering services provider KBR says it was awarded a debottlenecking contract by SATORP, a joint-venture between Saudi Aramco and Total, for its 440,000 bbl/day refinery in Jubail, Saudi Arabia. The project is expected to increase refinery throughput by 15%, once completed by the middle of 2020. Financial terms of the deal were not disclosed.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$62.51▼0.450.47
 
86.29
WTI$54.56▼1.342.53
 
76.41
CDN LT$50.53▼1.720.83
 
69.32
C5+$52.56▼0.837.04
 
71.40
WCS$44.87▼2.212.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ FEB 4   █ JAN 28   █ JAN 21   █ JAN 14   (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
  • Altagas (ALA +3.6%)
  • Paramount Res (POU +3%)
  • Imperial Oil (IMO +2.4%)
  • Suncor Energy (SU +2.4%)
  • Encana (ECA +2.3%)
  • 12-MO HIGHS
  • Enbridge (ENB +1.4%)
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Ensign Energy Svcs (ESI -4.8%)
  • CES Energy (CEU -4.6%)
  • Crescent Point (CPG -3.9%)
  • Precision Drilling (PD -3.8%)
  • Trican Well Svc (TCW -3.8%)
  • 12-MO LOWS
  • Crescent Point (CPG -3.9%)
  • 10-YR LOWS
  • Crescent Point (CPG -3.9%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU43.38▲2.435.53
     
    55.47D   W
    Imperial OilIMO36.39▲2.433.43
     
    44.91D   W
    Husky EnergyHSE15.640.013.33
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB49.08▲1.437.36
     
    49.11D   W
    TransCanadaTRP55.75▲0.847.90
     
    59.51D   W
    Pembina PipelinePPL46.88▼0.037.60
     
    47.84D   W
    Inter PipelineIPL20.84▼-0.218.60
     
    25.66D   W
    Keyera KEY28.24▼-0.124.05
     
    38.91D   W
    Gibson EnergyGEI19.92▼-1.615.68
     
    23.32D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.57▲1.630.11
     
    49.08D   W
    Cenovus EnergyCVE10.11▲0.58.74
     
    14.84D   W
    EncanaECA9.18▲2.36.90
     
    18.54D   W
    TourmalineTOU17.90▲0.815.84
     
    26.19D   W
    Vermilion EnergyVET32.29▲1.026.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI20.03▼-2.216.05
     
    24.57D   W
    EnerflexEFX17.21▼-1.213.55
     
    18.72D   W
    Mullen Group MTL11.95▼-1.211.39
     
    16.93D   W
    ShawcorSCL19.62▼-1.815.11
     
    28.89D   W
    Secure EnergySES7.91▼-1.76.25
     
    8.91D   W
    REFINING & MARKETING
    Parkland FuelPKI37.06▼-0.627.36
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Newfield Expl (NFX +2.4%)
  • Noble Energy (NBL +2.4%)
  • ConocoPhillips (COP +1.8%)
  • Diamondback (FANG +1.6%)
  • TechnipFMC (FTI +1.5%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Exxon Mobil (XOM -1.4%)
  • Cabot O&G (COG -0.7%)
  • Valero Energy (VLO -0.5%)
  • Occidental Petro (OXY -0.5%)
  • Concho Res (CXO -0.2%)
  • 12-MO LOWS
  • None
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM74.82▼-1.464.65
     
    87.36D   W
    ChevronCVX119.74▲1.2100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI18.36▲0.114.62
     
    18.67D   W
    Williams CoWMB27.37▼-0.220.36
     
    32.22D   W
    ONEOKOKE65.99▲1.350.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP69.93▲1.850.18
     
    80.24D   W
    EOG ResourcesEOG99.38▲0.582.04
     
    133.53D   W
    Occidental PetroOXY67.74▼-0.556.83
     
    87.67D   W
    Anadarko PetroAPC49.13▲1.440.40
     
    76.70D   W
    Pioneer Natural ResPXD144.57▲1.1119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB44.60▲0.134.99
     
    75.43D   W
    HalliburtonHAL32.25▲0.424.70
     
    54.91D   W
    Baker HughesBHGE24.58▲0.920.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV30.15▲0.824.27
     
    49.08D   W
    TechnipFMCFTI23.52▲1.518.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC65.91▲0.754.29
     
    88.45D   W
    Phillips 66PSX94.76▲0.678.44
     
    123.97D   W
    Valero EnergyVLO84.79▼-0.568.81
     
    126.98D   W
    HollyFrontierHFC55.14▼-0.142.42
     
    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.A63.41▲0.955.04
     
    73.86D   W
    TotalTOT55.51▲0.449.70
     
    65.69D   W
    BPBP41.39▲0.136.15
     
    47.83D   W
    EniE34.02▲0.329.75
     
    40.15D   W
    EquinorEQNR23.33▲1.319.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • ConocoPhillips (COP): Upgraded from Neutral to Buy at Goldman Sachs.

    • Diamond Offshore Drilling (DO): Upgraded from Accumulate to Buy at Fearnley.

    DOWNGRADES

    • CES Energy Solutions (CEU.TO): Downgraded from Strong Buy to Outperform at Raymond James.

    • Gran Tierra Energy (GTE.TO): Downgraded from Buy to Hold at GMP Securities.

    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
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