WCS discount narrows to almost US$9 a barrel

WCS discount narrows to almost US$9 a barrel

Today's energy market action:

  • A relatively quiet day in energy markets on Monday, with Brent posting a 0.3% gain and WTI posting a 0.4% loss.
  • The discount on Canadian heavy narrowed by about US$0.50, ending the day at just over US$9 per barrel, and sending WCS up 0.5%. The WCS discount is now the lowest since May 2017.
  • Gasoline was unchanged for the day while heating oil declined 0.7%.

Today's treasury, currency and equity market action:

  • Global bond yields continue to sink lower, including in the US. The UK 10-year fell below 1%, while Japanese and German treasury yields slid deeper into negative territory.
  • Little movement in currency markets on Monday. The loonie gained 0.2%.
  • Except for a steep decline in Chinese markets overnight, global equity markets were also little changed on Monday.
  • The S&P 500 energy sector was unchanged, while TSX energy stocks averaged a 2% decline.

Today's notable energy news:

  • Energy Transfer and Royal Dutch Shell announced a Project Framework Agreement for re-development of the Lake Charles LNG terminal in Louisiana. The two companies plan to begin soliciting EPC bids in the next few weeks, which may lead to a positive final investment decision at a later date. If approved, Energy Transfer’s existing Lake Charles LNG import terminal be converted to a 16.45 million t/y export facility.
  • Valero Energy temporarily shutdown its 145,000 bbl/day Benicia Refinery in California due to operational issues with its flue-gas scrubber. The facility was emitting coke particles through its flare stack, resulting in an air-quality advisory for the county, located just northeast of San Francisco. Cause of the incident was not disclosed. The company has yet to provide a timeline for restart.
  • Kinder Morgan has walked away from the Texas COLT offshore loading terminal, one of eight crude export terminals currently being developed in the Gulf Coast. The company says the project no longer aligns with its "strategic priorities." The US$800 million facility would be located 48 km offshore Freeport, and be capable of loading 2 million barrel supertankers. JV partners Enbridge and Oiltanking both remain committed to the project. Project-lead Enbridge also says it plans to buy out Kinder Morgan's stake.
  • TechnipFMC announced a "large" EPC contract by Eni for five deepwater wells and a floating production unit offshore Indonesia. The contract was said to be worth as much as U$1 billion.
  • Pengrowth Energy reached an agreement with its lenders to extend the maturity date on its $330 million revolving credit facility from the end of March to the end of September. The company says the extension gives it more time to explore strategic alternatives in light of its upcoming debt maturities.

Today's updates from the Scotia Howard Weil Energy Conference in New Orleans:

  • ExxonMobil VP Bryan Milton warns demand for fuel oil is expected to fall 25% by 2025 due to new marine shipping fuel standards that take effect next year. The new standards reduce the sulphur limit to 0.5%, and is expected to dramatically reduce demand for bunker fuels.
  • Schlumberger says it will stop taking new field management contracts and offload some existing deals. The contracts require the company to spend billions upfront to develop the oilfield, sometimes even taking an equity stake in the project.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$67.21▲0.350.47
 
86.29
WTI$58.82▼0.442.53
 
76.41
CDN LT$53.82▼0.420.83
 
69.32
C5+$53.82▼0.437.04
 
71.40
WCS$49.77▲0.512.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAR 25   █ MAR 18   █ MAR 11   █ MAR 4   (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
  • Tourmaline (TOU +1%)
  • Keyera (KEY +0.5%)
  • TransCanada (TRP +0.3%)
  • Gibson Energy (GEI +0%)
  • 12-MO HIGHS
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Crescent Point (CPG -4.7%)
  • Birchcliff Energy (BIR -3.5%)
  • Cenovus Energy (CVE -3%)
  • Parex Resources (PXT -2.9%)
  • Seven Generations (VII -2.8%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU44.17▼-2.335.53
     
    55.47D   W
    Imperial OilIMO35.85▼-1.633.43
     
    44.91D   W
    Husky EnergyHSE13.49▼-0.713.33
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB48.92▼-0.537.36
     
    49.70D   W
    TransCanadaTRP60.87▲0.347.90
     
    61.17D   W
    Pembina PipelinePPL48.89▼-1.537.60
     
    50.45D   W
    Inter PipelineIPL21.65▼-0.618.60
     
    25.66D   W
    Keyera KEY31.28▲0.524.05
     
    38.91D   W
    Gibson EnergyGEI22.88▲0.015.90
     
    23.63D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ36.23▼-2.130.11
     
    49.08D   W
    Cenovus EnergyCVE11.42▼-3.08.74
     
    14.84D   W
    EncanaECA9.27▼-1.76.90
     
    18.54D   W
    TourmalineTOU21.56▲1.015.84
     
    26.19D   W
    Vermilion EnergyVET33.30▼-0.926.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI19.93▼-0.716.61
     
    24.57D   W
    EnerflexEFX19.14▼-1.213.55
     
    20.38D   W
    Mullen Group MTL12.07▼-1.111.26
     
    16.93D   W
    ShawcorSCL20.86▼-2.815.11
     
    28.89D   W
    Secure EnergySES8.26▼-0.76.25
     
    9.44D   W
    REFINING & MARKETING
    Parkland FuelPKI39.32▼-0.727.96
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • TechnipFMC (FTI +2.8%)
  • Noble Energy (NBL +2%)
  • Cabot O&G (COG +1.7%)
  • Devon Energy (DVN +1.7%)
  • ConocoPhillips (COP +1.5%)
  • 12-MO HIGHS
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Halliburton (HAL -1.7%)
  • EOG Resources (EOG -1%)
  • Exxon Mobil (XOM -0.7%)
  • Pioneer Natural Res (PXD -0.5%)
  • Diamondback (FANG -0.4%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM79.92▼-0.764.65
     
    87.36D   W
    ChevronCVX122.89▼-0.2100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI20.13▲1.214.62
     
    20.44D   W
    Williams CoWMB28.70▲0.820.36
     
    32.22D   W
    ONEOKOKE69.28▲0.450.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP67.07▲1.556.57
     
    80.24D   W
    EOG ResourcesEOG92.78▼-1.082.04
     
    133.53D   W
    Occidental PetroOXY65.13▼-0.256.83
     
    87.67D   W
    Anadarko PetroAPC43.60▲0.940.40
     
    76.70D   W
    Pioneer Natural ResPXD139.93▼-0.5119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB42.470.034.99
     
    75.43D   W
    HalliburtonHAL28.24▼-1.724.70
     
    54.91D   W
    Baker HughesBHGE27.43▲1.020.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV26.630.024.27
     
    49.08D   W
    TechnipFMCFTI23.30▲2.818.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC61.17▼-0.254.29
     
    88.45D   W
    Phillips 66PSX95.86▼-0.178.44
     
    123.97D   W
    Valero EnergyVLO85.48▲0.968.81
     
    126.98D   W
    HollyFrontierHFC50.67▲0.146.75
     
    83.28D   W
    NYSE ADRs
    COMPANY TICKER CLOSE %CHG L 52WK H CHART
    Royal Dutch ShellRDS.A62.79▼-0.155.04
     
    73.86D   W
    TotalTOT55.71▼-0.549.70
     
    65.69D   W
    BPBP43.53▼-1.036.28
     
    47.83D   W
    EniE35.25▼-0.529.75
     
    40.15D   W
    EquinorEQNR22.55▲0.219.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • None

    DOWNGRADES

    • Granite Oil (GXO.TO): Downgraded from Speculative Buy to Hold at TD 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
    Oil prices move up as recession fears dissipate

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