WTI takes a haircut as crude inventories unexpectedly rise

WTI takes a haircut as crude inventories unexpectedly rise

Today's energy and equity market action:

  • A surprise build in US crude stockpiles sent WTI 1% lower on Wednesday, giving back some of yesterday's gains. Brent ended the day roughly unchanged.
  • WCS declined 1.3%, while Canadian Light posted a 0.4% drop, helped by a slight narrowing of its discount to WTI.
  • Most other energy commodities didn't fare much better on Wednesday. Heating oil declined 0.5% while gasoline lost almost 2%. Henry Hub fell 1.2%, returning to the lows of mid-February.
  • Global equity markets were all over the map on Wednesday. Overnight, Chinese markets all ticked higher, while European markets were flat for the day.
  • In New York, the NYSE dipped 0.4%, while the S&P 500 Large Cap index declined 0.5%. Except for industrials, all other sectors posted losses for the day. The US energy sector declined 0.7%.
  • In Toronto, the TSX slid 0.1%, dragged lower by a 1.7% decline in energy stocks.
  • Except for a handful of stocks, most energy components ended the day lower on both sides of the border.

Today's notable energy news:

  • According to the Energy Information Administration, crude stockpiles unexpectedly rose by 2.8 million barrels in the US last week, mostly due to a sharp rise in Gulf Coast inventories. Gasoline and distillate stockpiles continue to trend lower, falling another 5 million barrels.
  • Minnesota regulators have rejected a last-ditch effort to overturn its approval of Enbridge's Line 3 Replacement project, granting the project a final green-light on Tuesday. The $9 billion expansion is expected to be in service sometime in the second half of 2020, adding 370,000 bbl/day of crude export capacity out of Western Canada and into the US Midwest.
  • Imperial Oil has resumed "a small amount" of crude exports by rail from its Edmonton terminal. The company says the volumes are "economic under current conditions." Imperial cut rail shipments from about 170,000 bbl/day in December to almost zero in February, after the heavy oil discount was cut from over US$40/bbl to about US$10. WCS prices in the Gulf Coast are now averaging about US$3 above par with the WTI benchmark, or roughly US$63 a barrel.
  • Saudi Aramco has agreed to purchase the Saudi kingdom's 70% stake in Saudi Basic Industries Corp (SABIC) for US$69.1 billion. The remaining 30% will continue to be publicly traded on the Saudi stock exchange. Aramco is expected to hold its first international bond issuance in the next few weeks, in part to fund the deal.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$67.83▼0.250.47
 
86.29
WTI$59.41▼0.942.53
 
76.41
CDN LT$54.71▼0.420.83
 
69.32
C5+$54.41▼1.037.04
 
71.40
WCS$50.11▼1.312.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAR 27   █ MAR 20   █ MAR 13   █ MAR 6   (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
  • Parex Resources (PXT +1.2%)
  • Parkland Fuel (PKI +0.6%)
  • Enerflex (EFX +0.6%)
  • Enbridge (ENB +0.3%)
  • Pembina Pipeline (PPL +0.3%)
  • 12-MO HIGHS
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Nuvista Energy (NVA -5.6%)
  • Ensign Energy Svcs (ESI -3.8%)
  • Baytex Energy (BTE -3.7%)
  • Tourmaline (TOU -3.3%)
  • MEG Energy (MEG -3.3%)
  • 12-MO LOWS
  • Husky Energy (HSE -1.9%)
  • CES Energy (CEU -0.4%)
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU43.48▼-2.435.53
     
    55.47D   W
    Imperial OilIMO36.00▼-1.333.43
     
    44.91D   W
    Husky EnergyHSE13.27▼-1.913.27
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB49.15▲0.337.36
     
    49.70D   W
    TransCanadaTRP60.70▼-0.347.90
     
    61.47D   W
    Pembina PipelinePPL49.12▲0.337.60
     
    50.45D   W
    Inter PipelineIPL21.89▼-0.518.60
     
    25.66D   W
    Keyera KEY31.43▼-0.424.05
     
    38.91D   W
    Gibson EnergyGEI23.29▼-0.115.90
     
    23.63D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ36.42▼-1.930.11
     
    49.08D   W
    Cenovus EnergyCVE11.53▼-1.28.74
     
    14.84D   W
    EncanaECA9.60▼-0.66.90
     
    18.54D   W
    TourmalineTOU21.00▼-3.315.84
     
    26.19D   W
    Vermilion EnergyVET33.34▼-0.826.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI19.81▲0.116.61
     
    24.57D   W
    EnerflexEFX19.50▲0.613.55
     
    20.38D   W
    Mullen Group MTL12.04▼-0.711.26
     
    16.93D   W
    ShawcorSCL20.19▼-1.615.11
     
    28.89D   W
    Secure EnergySES8.31▼-0.46.25
     
    9.44D   W
    REFINING & MARKETING
    Parkland FuelPKI39.96▲0.627.96
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Pioneer Natural Res (PXD +2.9%)
  • Concho Res (CXO +0.5%)
  • Marathon Petro (MPC +0.4%)
  • Halliburton (HAL +0.3%)
  • Cimarex Energy (XEC +0.1%)
  • 12-MO HIGHS
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Apache (APA -1.8%)
  • Ntl-Oilwell Varco (NOV -1.8%)
  • Noble Energy (NBL -1.7%)
  • Baker Hughes (BHGE -1.5%)
  • Hess Corp (HES -1.4%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM80.34▼-0.864.65
     
    87.36D   W
    ChevronCVX122.79▼-1.1100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI19.98▼-0.614.62
     
    20.44D   W
    Williams CoWMB28.49▼-0.420.36
     
    32.22D   W
    ONEOKOKE68.84▼-0.750.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP67.91▼-1.056.57
     
    80.24D   W
    EOG ResourcesEOG94.59▼-0.282.04
     
    133.53D   W
    Occidental PetroOXY66.35▼-1.156.83
     
    87.67D   W
    Anadarko PetroAPC44.50▼-1.040.40
     
    76.70D   W
    Pioneer Natural ResPXD147.15▲2.9119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB42.68▼-0.934.99
     
    75.43D   W
    HalliburtonHAL28.56▲0.324.70
     
    54.91D   W
    Baker HughesBHGE27.28▼-1.520.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV26.31▼-1.824.27
     
    49.08D   W
    TechnipFMCFTI23.22▼-0.918.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC62.19▲0.454.29
     
    88.45D   W
    Phillips 66PSX97.27▼-0.878.44
     
    123.97D   W
    Valero EnergyVLO86.02▼-1.168.81
     
    126.98D   W
    HollyFrontierHFC50.82▼-0.946.75
     
    83.28D   W
    NYSE ADRs
    COMPANY TICKER CLOSE %CHG L 52WK H CHART
    Royal Dutch ShellRDS.A62.58▼-1.055.04
     
    73.86D   W
    TotalTOT55.74▼-0.849.70
     
    65.69D   W
    BPBP43.59▼-0.536.28
     
    47.83D   W
    EniE35.09▼-0.529.75
     
    40.15D   W
    EquinorEQNR22.05▼-1.919.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • Oil States International (OIS): Upgraded from Outperform to Strong Buy at Raymond James.

    DOWNGRADES

    • Kinder Morgan (KMI): Downgraded from Buy to Neutral at Citigroup.

    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 end Thursday unscathed despite another Trump tweet and higher US dollar

    Oil prices end Thursday unscathed despite another Trump tweet and higher US dollar

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    Oil prices move up as recession fears dissipate

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