WCS tops US$50 a barrel, returning to levels of last July

WCS tops US$50 a barrel, returning to levels of last July

Today's energy market action:

  • WTI topped US$60 a barrel on Thursday, but retreated to US$59.98 by the end of the day, up 0.3% from yesterday's close. Brent declined almost 1% on Thursday.
  • Canadian Light and Western Canadian Select (WCS) gained over 2%, as the discounts to WTI each narrowed by about US$1 per barrel. WCS topped US$50 on Thursday, for the first time since last July.
  • Gasoline was flat for the day, while heating oil declined 1%.

Today's currency and equity market action:

  • The US dollar rose almost 1%, recouping all of yesterday's losses, mostly due to weakness in other foreign currencies. The loonie declined about 0.5%, despite the release of decent wholesale trade and employment data for the month of January.
  • US equity markets rallied nicely on Thursday. The NYSE rose 0.7%, while the NASDAQ gained 1.4%. The S&P 500 Index rose over 1%, mostly due to strength in large cap technology names. The SPX energy sector increased 0.7%, with midstream stocks posting the best gains for the day.
  • In Toronto, the TSX rose 0.5%, led higher by the more offensive sectors. The Canadian energy sector gained 0.6%, with producers once again leading to the upside.

Today's notable energy news:

  • CN Rail announced plans to invest $370 million across Alberta to strengthen the province's infrastructure. The plan includes building new tracks and doubling of rail lines, mainly around the Edmonton area. The company says this "new record capital investment" will boost "capacity and network resiliency" while meeting growing traffic demand on its rail networks.
  • Murphy Oil sold its two Malaysian subsidiaries to a subsidiary of PTTEP for US$2.1 billion in cash. The divested properties account for about 48,000 boe/day of production, weighted 62% liquids. The company says it wants to reduce its debt load, and focus on its core holdings in the US. The company's board also approved US$500 million in share buybacks.
  • Altagas Chairman and founder David Cornhill will be stepping down on April 1st, to be replaced with Pentti Karkkainen. Cornhill will remain on the Board, for now.

Today's debt issuances and share buybacks:

  • Enerplus announced plans to buyback up to 16.7 million ERF shares over the next 12 months, representing about 7% of public float. The company says its shares are currently trading "in a price range that does not adequately reflect their underlying value."
  • Inter Pipeline announced $750 million in fixed-to-floating notes due in 2079. Net proceeds will be used to reduce revolving credit debt, fund capital spending, and general accounting purposes.
  • Valero Energy priced a public offering of US$1 billion in senior notes due in 2029. Net proceeds will be used for general corporate purposes.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$67.86▼0.950.47
 
86.29
WTI$59.98▲0.342.53
 
76.41
CDN LT$54.98▲2.320.83
 
69.32
C5+$54.98▲0.337.04
 
71.40
WCS$50.38▲2.112.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAR 21   █ MAR 14   █ MAR 7   █ FEB 28   (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
  • Crescent Point (CPG +6.6%)
  • MEG Energy (MEG +4.7%)
  • Baytex Energy (BTE +3.3%)
  • Kelt Exploration (KEL +3.3%)
  • Enerplus (ERF +3.2%)
  • 12-MO HIGHS
  • Pembina Pipeline (PPL +0.6%)
  • Gibson Energy (GEI +0.6%)
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Gran Tierra (GTE -2.1%)
  • Encana (ECA -1.4%)
  • Parkland Fuel (PKI -1%)
  • Shawcor (SCL -0.9%)
  • Mullen Group (MTL -0.7%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU46.23▲0.335.53
     
    55.47D   W
    Imperial OilIMO37.18▲0.333.43
     
    44.91D   W
    Husky EnergyHSE13.89▲1.713.33
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB49.18▼0.037.36
     
    49.70D   W
    TransCanadaTRP60.66▼-0.247.90
     
    61.17D   W
    Pembina PipelinePPL50.20▲0.637.60
     
    50.45D   W
    Inter PipelineIPL22.11▲0.218.60
     
    25.66D   W
    Keyera KEY32.04▲0.424.05
     
    38.91D   W
    Gibson EnergyGEI23.54▲0.615.90
     
    23.63D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ38.02▲0.730.11
     
    49.08D   W
    Cenovus EnergyCVE12.30▲0.98.74
     
    14.84D   W
    EncanaECA9.85▼-1.46.90
     
    18.54D   W
    TourmalineTOU21.63▲1.315.84
     
    26.19D   W
    Vermilion EnergyVET34.38▲1.026.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI20.60▲0.616.61
     
    24.57D   W
    EnerflexEFX19.69▼-0.413.55
     
    20.38D   W
    Mullen Group MTL12.41▼-0.711.26
     
    16.93D   W
    ShawcorSCL22.01▼-0.915.11
     
    28.89D   W
    Secure EnergySES8.57▼-0.76.25
     
    9.44D   W
    REFINING & MARKETING
    Parkland FuelPKI40.79▼-1.027.96
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Apache (APA +2.2%)
  • Williams Co (WMB +2.1%)
  • HollyFrontier (HFC +1.7%)
  • Kinder Morgan (KMI +1.6%)
  • ONEOK (OKE +1.5%)
  • 12-MO HIGHS
  • Kinder Morgan (KMI +1.6%)
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Ntl-Oilwell Varco (NOV -1.7%)
  • Anadarko Petro (APC -0.3%)
  • Halliburton (HAL -0.2%)
  • Schlumberger (SLB -0.2%)
  • Occidental Petro (OXY -0.1%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM81.79▲0.664.65
     
    87.36D   W
    ChevronCVX125.86▲0.9100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI20.42▲1.614.62
     
    20.44D   W
    Williams CoWMB28.93▲2.120.36
     
    32.22D   W
    ONEOKOKE69.85▲1.550.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP68.14▲0.955.04
     
    80.24D   W
    EOG ResourcesEOG96.87▲1.082.04
     
    133.53D   W
    Occidental PetroOXY67.24▼-0.156.83
     
    87.67D   W
    Anadarko PetroAPC45.27▼-0.340.40
     
    76.70D   W
    Pioneer Natural ResPXD145.59▲0.8119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB44.22▼-0.234.99
     
    75.43D   W
    HalliburtonHAL30.04▼-0.224.70
     
    54.91D   W
    Baker HughesBHGE28.46▲0.720.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV27.90▼-1.724.27
     
    49.08D   W
    TechnipFMCFTI23.83▲0.418.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC62.79▲1.054.29
     
    88.45D   W
    Phillips 66PSX98.55▲0.478.44
     
    123.97D   W
    Valero EnergyVLO86.38▼-0.168.81
     
    126.98D   W
    HollyFrontierHFC52.32▲1.746.75
     
    83.28D   W
    NYSE ADRs
    COMPANY TICKER CLOSE %CHG L 52WK H CHART
    Royal Dutch ShellRDS.A64.08▼-0.655.04
     
    73.86D   W
    TotalTOT57.50▼-0.749.70
     
    65.69D   W
    BPBP44.530.036.28
     
    47.83D   W
    EniE36.06▼-0.329.75
     
    40.15D   W
    EquinorEQNR23.00▲0.519.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • ConocoPhillips (COP): Upgraded from Neutral to Overweight at PiperJaffray.

    DOWNGRADES

    • None

    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
    Inverted yield curve spooks traders, sending oil prices lower

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