Energy stocks retreat despite a forecasted decline in US stockpiles
Today's energy and equity market action:
- Oil prices were little changed on Tuesday. Differentials on Canadian benchmarks were also unchanged from Monday's close.
- Heating oil gained about 1% for the day, while gasoline rose 0.4%. Henry Hub natural gas prices rose 0.8%.
- A rather quiet Tuesday in North American equity markets, with the NYSE dipping 0.2% and the TSX giving back 0.4%.
- In the energy space, the S&P 500 energy sector declined 0.3% while the TSX energy basket fell 0.9%.
- Producers were the worst performing subsector on both sides of the border.
Today's notable energy news:
- The American Petroleum Institute is forecasting a decline of 2.1 million barrels in US crude stockpiles for last week, including a 317,000 barrel decline in Cushing. Product stockpiles are also projected to show a drawdown. Official numbers from the Energy Information Administration are due to be released tomorrow morning.
- The Alberta government raised its crude production quota by 25,000 bbl/day in May and another 25,000 bbl/day in June, bringing the province's production cap to 3.71 million bbl/day. By June, the limit would have been increased by 150,000 bbl/day since the curtailment program began at the beginning of the year. The NDP government also officially called the next provincial election for Tuesday April 16, 2019.
- After 7 years of construction, Fluor and TechnipFMC announced the completion of a new petrochemical complex for South African energy major Sasol, located on the Louisiana Gulf Coast. The plastics facility includes a 1.5 million t/y ethane cracker, and already began polyethylene production last month.
- Mexico's Pemex has launched the bidding process for a new US$8 billion refinery, to be located on the country's southern Gulf coast. President Andres Manuel Lopez Obrador says he wants to avoid corruption during the plant's construction, while weaning the country off US gasoline imports. The facility will include 17 processing plants and 93 storage tanks, as well as access to highways, rail and a marine terminal. The bidder's list includes EPC firms Jacobs, Bechtel, WorleyParsons, KBR and TechnipFMC.
|Suncor Energy||SU||45.74||▲0.2||35.53||55.47||D W|
|Imperial Oil||IMO||36.67||▼-1.2||33.43||44.91||D W|
|Husky Energy||HSE||13.73||▼-0.7||13.33||22.99||D W|
|Pembina Pipeline||PPL||49.54||▼-0.6||37.60||50.04||D W|
|Inter Pipeline||IPL||22.02||▼-0.5||18.60||25.66||D W|
|Gibson Energy||GEI||23.21||▲0.4||15.90||23.35||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||36.94||▼-1.2||30.11||49.08||D W|
|Cenovus Energy||CVE||11.81||▼-0.7||8.74||14.84||D W|
|Vermilion Energy||VET||33.30||▼-2.1||26.67||49.67||D W|
|Pason Systems||PSI||20.58||▼-0.2||16.61||24.57||D W|
|Mullen Group||MTL||12.68||0.0||11.26||16.93||D W|
|Secure Energy||SES||8.59||▼-0.7||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||40.80||▲1.6||27.96||47.45||D W|
|Exxon Mobil||XOM||80.87||▼-0.3||64.65||87.36||D W|
|Kinder Morgan||KMI||20.05||▲0.3||14.62||20.18||D W|
|Williams Co||WMB||28.13||▲1.2||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||92.88||▲1.0||82.04||133.53||D W|
|Occidental Petro||OXY||66.17||▼-1.3||56.83||87.67||D W|
|Anadarko Petro||APC||44.46||▼-1.4||40.40||76.70||D W|
|Pioneer Natural Res||PXD||138.21||▼-0.3||119.08||213.40||D W|
|Baker Hughes||BHGE||27.82||▼-1.3||20.09||37.76||D W|
|Ntl-Oilwell Varco||NOV||28.16||▲0.1||24.27||49.08||D W|
|Marathon Petro||MPC||62.03||▼-0.1||54.29||88.45||D W|
|Phillips 66||PSX||98.89||▲0.2||78.44||123.97||D W|
|Valero Energy||VLO||86.43||▼-0.4||68.81||126.98||D W|
Crestwood Equity Partners (CEQP): Upgraded from Market Perform to Outperform at Wells Fargo.
Noble Energy (NBL): Upgraded from Neutral to Buy at Mizuho.
TC Pipelines (TRP.TO): Upgraded from Market Perform to Outperform at Wells Fargo.
Anadarko Petroleum (APC): Downgraded from Buy to Neutral at Mizuho.
Antero Resources (AR): Downgraded from Buy to Hold at Tudor Pickering.
Approach Resources (AREX): Downgraded from Neutral to Sell at EuroPacific Canada.
CNX Midstream Partners (CNXM): Downgraded from Outperform to Market Perform at Wells Fargo.
Enphase Energy (ENPH): Downgraded from Market Perform to Underperform at Raymond James.
Pioneer Natural Resources (PXD): Downgraded from Buy to Neutral at Mizuho.
Mammoth Energy Services (TUSK): Downgraded from Outperform to Neutral at Credit Suisse.
UPDATED: DAILY (END-OF-DAY)
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