Oil prices move higher on Friday, helping WTI finally crack US$60
Today's energy market action:
- Risk appetite resurfaced on Friday, sending equity markets and most commodities higher,
- Brent rose almost 1% while WTI gained 1.4%, ending the week back above US$60 for the first time since early November.
- Canadian Light and WCS also rose about 1.5%. The Edmonton Condensate (C5+) discount to WTI narrowed another US$0.25 to US$4.20 a barrel, sending C5+ prices up 2%.
- Gasoline prices rose 1% while heating oil was unchanged. Henry Hub dropped another 2% on Friday, bringing weekly losses to almost 4%.
Today's currency and equity market action:
- Better than expected GDP data sent the Canadian dollar up 0.7%. Most other currencies, including the US dollar were little changed for the day.
- Except for the TSX, most major markets ended the day in the positive. The NYSE rose 0.5%, while the S&P 500 rose 0.7%. The TSX ended the day down 0.3%.
- The TSX energy sector declined 0.5% on Friday, while SPX energy dipped 0.2%.
Today's notable energy news:
- According to Baker Hughes, US drillers took 8 oil rigs out of service this week, ending Friday at 816. Canada lost another 14 rigs, ending the week at 35.
- President Trump signed another Presidential Permit for TransCanada's Keystone XL pipeline, superseding the original permit signed in March 2017. TransCanada thanked the President for his support. According to Axios, the President is set to sign an Executive Order next week to expedite the development of oil and gas pipelines. The move is said to be part of Trump's plan for America's "energy dominance" around the world.
- Bellatrix Exploration announced a Recapitalization Transaction, where US$146 million in Senior Unsecured Notes will be converted to US$100 million in Second and Third Lien Notes, with remaining debt converted to common shares. The company's $50 million in Convertible Debentures will also be exchanged for new common shares. Shares currently listed on the TSX will be consolidated and reduced to a 16.5% float. Bellatrix shares plunged over 20% for the day.
- Magellan Midstream Partners and Navigator Energy Services have extended open season on the proposed Voyager Pipeline, which would transport at least 300,000 bbl/day of crude from Magellan's Cushing terminal to East Houston. Subject to sufficient demand and all regulatory approvals, the pipeline is planned to be operational by the end of 2020.
- Petrobras is taking another stab at selling its LPG distribution business, opening its books for potential buyers. The company had agreed to sell the division to rival Ultrapar for US$720 million, but the deal was blocked due to antitrust concerns.
- Saudi Arabia's National Shipping Company and Mexico' Indelpro are suing Valero Energy for allegedly selling them contaminated bunker fuel last year. The two companies claim to have spent millions repairing damaged ship engines.
|Suncor Energy||SU||43.31||▼-0.7||35.53||55.47||D W|
|Imperial Oil||IMO||36.48||▼-0.6||33.43||44.91||D W|
|Husky Energy||HSE||13.25||▼-0.5||13.24||22.99||D W|
|Pembina Pipeline||PPL||49.09||▼-0.4||37.60||50.45||D W|
|Inter Pipeline||IPL||22.11||▲0.5||18.60||25.66||D W|
|Gibson Energy||GEI||22.97||▲0.5||15.90||23.63||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||36.69||▼-0.6||30.11||49.08||D W|
|Cenovus Energy||CVE||11.60||▲0.4||8.74||14.84||D W|
|Vermilion Energy||VET||32.99||▼-0.3||26.67||49.67||D W|
|Pason Systems||PSI||19.50||▼-0.6||16.61||24.57||D W|
|Mullen Group||MTL||11.98||▼-0.4||11.26||16.93||D W|
|Secure Energy||SES||8.18||▼-1.1||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||40.83||▲0.4||27.96||47.45||D W|
|Exxon Mobil||XOM||80.80||▲0.1||64.65||87.36||D W|
|Kinder Morgan||KMI||20.01||▲0.3||14.62||20.44||D W|
|Williams Co||WMB||28.72||▲0.2||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||95.18||▼-0.1||82.04||133.53||D W|
|Occidental Petro||OXY||66.20||▼-0.6||56.83||87.67||D W|
|Anadarko Petro||APC||45.48||▲0.9||40.40||76.70||D W|
|Pioneer Natural Res||PXD||152.28||▼-0.4||119.08||213.40||D W|
|Baker Hughes||BHGE||27.72||▲2.1||20.09||37.76||D W|
|Ntl-Oilwell Varco||NOV||26.64||▲0.5||24.27||49.08||D W|
|Marathon Petro||MPC||59.85||▼-1.8||54.29||88.45||D W|
|Phillips 66||PSX||95.17||▼-0.6||78.44||123.97||D W|
|Valero Energy||VLO||84.83||0.0||68.81||126.98||D W|
Oil States International (OIS): Upgraded from Market Perform to Outperform at Wells Fargo.
Ranger Energy Services (RNGR): Upgraded from Market Perform to Outperform at Wells Fargo.
FTS International (FTSI): Downgraded from Outperform to Market Perform at Wells Fargo.
UPDATED: DAILY (END-OF-DAY)
• OIL PRICES REFLECT NEAR MONTH CONTRACT FROM THE NYMEX/CME GROUP
• EQUITY PRICES PROVIDED BY NYSE & TMX GROUP
• CHARTPACKS COURTESY STOCKCHARTS.COM (DIVIDEND ADJUSTED)
• 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