Oil prices move up as recession fears dissipate
Today's energy market action:
- Traders returned to stocks and commodities on Tuesday, sending oil prices and most global indices higher.
- Brent rose 1%, while WTI gained almost 2%, ending the day just a hair below US$60 a barrel.
- Canada's light and heavy oil benchmarks also rose 2%. Discounts to WTI were roughly unchanged for the day.
- Gasoline prices gained about 1%, while heating oil rose 0.5%.
Today's equity market action:
- Equity markets came back to life on Tuesday, with most global markets posting gains for the day.
- In New York, the NYSE rose 0.8%, while the NASDAQ and S&P 500 both gained 0.7%. All SPX sectors ended Tuesday in the green. Energy stocks led to the upside, with a 1.5% gain.
- In Toronto, the TSX rose 0.6%. Energy was also the best performer, rising 1.7%.
- As expected, producers were the best performing subsector on both sides of the border.
Today's notable energy news:
- According to the American Petroleum Institute, crude oil stockpiles are estimated to have increased by 2 million barrels last week, while product stockpiles are expected to have declined by 8 million barrels. Official numbers from the Energy Information Administration are due to be released Wednesday morning.
- Energy Transfer and Phillips 66 Partners announced the completion of the second phase of their Bayou Bridge Pipeline. The line is designed to transport 480,000 bbl/day of crude from Lake Charles, Louisiana, to terminalling facilities just west of New Orleans. The line is expected to begin service on April 1st, and will be operated by Energy Transfer.
- According to Columbia's energy ministry, Noble Energy has taken over 40% of Royal Dutch Shell's contracts to potentially develop the country's offshore oil fields. Shell maintains a majority stake in the properties, and says they welcome Noble as a partner. Noble's core holdings are in US shale and emerging regions, such as the Eastern Mediterranean and West Africa.
- Another widespread power outage in Venezuela has halted oil exports out of PDVSA's marine terminal in Jose. The country's four upgraders, which have a combine capacity of 700,000 bbl/day, were also reported to have been disrupted. This is the second massive power blackout to hit the country this month, said to be caused by "years of underinvestment and lack of maintenance."
- BP announced plans to invest US$100 million in new emissions reductions projects over the next three years. The company says the new Upstream Carbon Fund will help it meet its goal of reducing upstream GHG emissions by 3.5 million tonnes by 2025, as measured from 2016 levels.
|Suncor Energy||SU||44.56||▲0.9||35.53||55.47||D W|
|Imperial Oil||IMO||36.49||▲1.8||33.43||44.91||D W|
|Husky Energy||HSE||13.53||▲0.3||13.33||22.99||D W|
|Pembina Pipeline||PPL||48.97||▲0.2||37.60||50.45||D W|
|Inter Pipeline||IPL||21.99||▲1.6||18.60||25.66||D W|
|Gibson Energy||GEI||23.31||▲1.9||15.90||23.63||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||37.14||▲2.5||30.11||49.08||D W|
|Cenovus Energy||CVE||11.67||▲2.2||8.74||14.84||D W|
|Vermilion Energy||VET||33.61||▲0.9||26.67||49.67||D W|
|Pason Systems||PSI||19.80||▼-0.7||16.61||24.57||D W|
|Mullen Group||MTL||12.12||▲0.4||11.26||16.93||D W|
|Secure Energy||SES||8.34||▲1.0||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||39.72||▲1.0||27.96||47.45||D W|
|Exxon Mobil||XOM||80.96||▲1.3||64.65||87.36||D W|
|Kinder Morgan||KMI||20.09||▼-0.2||14.62||20.44||D W|
|Williams Co||WMB||28.61||▼-0.3||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||94.77||▲2.1||82.04||133.53||D W|
|Occidental Petro||OXY||67.08||▲3.0||56.83||87.67||D W|
|Anadarko Petro||APC||44.94||▲3.1||40.40||76.70||D W|
|Pioneer Natural Res||PXD||143.07||▲2.2||119.08||213.40||D W|
|Baker Hughes||BHGE||27.68||▲0.9||20.09||37.76||D W|
|Ntl-Oilwell Varco||NOV||26.78||▲0.6||24.27||49.08||D W|
|Marathon Petro||MPC||61.96||▲1.3||54.29||88.45||D W|
|Phillips 66||PSX||98.02||▲2.3||78.44||123.97||D W|
|Valero Energy||VLO||87.00||▲1.8||68.81||126.98||D W|
Jadestone energy (JSE.V): Downgraded from Buy to Hold at GMP Securities.
UPDATED: DAILY (END-OF-DAY)
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