Better than expected Chinese economic data sends oil prices and energy stocks higher

Better than expected Chinese economic data sends oil prices and energy stocks higher

Today's energy market action:

  • Better than expected Chinese manufacturing data sent funds flowing back into stocks and commodities on Monday.
  • Brent rose almost 1% while WTI gained 2.4%. The differential between the two benchmarks shrank by almost US$1 to about US$7.50 a barrel.
  • Canadian light and heavy crude discounts each narrowed by about US$1, while the condensate (C5+) discount to WTI narrowed by US$0.60.
  • The WCS differential ended the day at US$8.26, the lowest since May 2017. Synthetic crude ended Monday just US$0.10 below par with WTI.
  • Gasoline and heating oil both rose about 0.8%, while Henry Hub gained almost 2%.

Today's treasury, currency and equity market action:

  • US bond yields moved sharply higher, particularly on the longer end of the curve.
  • The US dollar was flat on Monday, but the loonie managed a 0.2% gain, ending the day back above 75 cents.
  • In equity markets, most global exchanges ended the day higher. In New York, the NYSE, NASDAQ, S&P 500 and Dow Jones Industrial Average all rose just over 1%. US markets were in offensive mode, with financials and industrials leading to the upside.
  • In Toronto, the TSX gained 0.8%, with discretionary, energy and financials posting the biggest gains.
  • Energy services was the best performing subsector on both sides of the border.

Today's notable energy news:

  • According to Reuters, OPEC output hit a 4-year low of 30.4 million bbl/day in March, attributed to a 220,000 bbl/day voluntary cut from Saudi Arabia and 150,000 bbl/day involuntary cut from Venezuela. Nigeria and Libya both increased output last month.
  • North American Construction Group announced a 5-year contract with a "major" oil sands customer, said to be worth about $400 million to the end of 2023. The contract was executed within its new JV Mikisew North American Limited Partnership, owned jointly with the Mikisew Cree First Nation. The company says its core backlog now sits at $1.6 billion.
  • US federal regulators (FERC) have conditionally approved Pembina Pipeline's Jordan Cove Energy Project, which includes a 229 mile gas pipeline through the State of Oregon, terminating at a 7.8 million t/y LNG export terminal to be constructed in the Port of Coos Bay. Pembina says they are confident they can meet all of FERC's 137 conditions, in time for a final approval in January 2020. The project has an estimated price tag of US$10 billion.
  • According to Bloomberg, ConocoPhillips is in talks to sell some of its North Sea assets to Chrysaor. Conoco walked recently away from negotiations with Ineos to sell the properties for as much as US$3 billion. The company has been divesting its more mature oil fields to help fund exploration in the US shale patch.
  • Noble Energy and Marathon Petroleum have sanctioned the Alen natural gas development, located offshore Equatorial Guinea. The gas will be shipped to shore through a new 70 km pipeline, for processing at various existing onshore facilities. Alen is expected to produce between 200 and 300 MMcfe/day, with an expected start-up date of 2021.
  • American Midstream Partners reported a net loss of US$7.8 million for the full-year 2018, on revenues of US$805 million. The company says it will suspend dividend payments pending the sale of all its remaining common shares to ArcLight Energy, which is expected to close in the second quarter.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$69.01▲0.950.47
 
86.29
WTI$61.59▲2.442.53
 
76.41
CDN LT$57.68▲4.120.83
 
69.32
C5+$57.99▲3.737.04
 
71.40
WCS$53.33▲5.112.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ APR 1   █ MAR 25   █ MAR 18   █ MAR 11   (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
  • Precision Drilling (PD +6%)
  • CES Energy (CEU +5.9%)
  • MEG Energy (MEG +4.7%)
  • Cenovus Energy (CVE +4.7%)
  • Shawcor (SCL +4.4%)
  • 12-MO HIGHS
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Kelt Exploration (KEL -1.6%)
  • Keyera (KEY -0.4%)
  • Gibson Energy (GEI -0.1%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU43.85▲1.335.53
     
    55.47D   W
    Imperial OilIMO36.64▲0.433.43
     
    44.91D   W
    Husky EnergyHSE13.51▲2.013.24
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB48.48▲0.237.36
     
    49.70D   W
    TransCanadaTRP61.02▲1.747.90
     
    61.47D   W
    Pembina PipelinePPL49.67▲1.237.60
     
    50.45D   W
    Inter PipelineIPL22.19▲0.418.60
     
    25.66D   W
    Keyera KEY31.40▼-0.424.05
     
    38.91D   W
    Gibson EnergyGEI22.95▼-0.115.90
     
    23.63D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ37.18▲1.330.11
     
    49.08D   W
    Cenovus EnergyCVE12.14▲4.78.74
     
    14.84D   W
    EncanaECA9.89▲2.26.90
     
    18.54D   W
    TourmalineTOU20.640.015.84
     
    26.19D   W
    Vermilion EnergyVET33.40▲1.226.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI19.98▲2.516.61
     
    24.57D   W
    EnerflexEFX19.50▲2.213.55
     
    20.38D   W
    Mullen Group MTL12.20▲1.811.26
     
    16.93D   W
    ShawcorSCL20.88▲4.415.11
     
    28.89D   W
    Secure EnergySES8.48▲3.76.25
     
    9.44D   W
    REFINING & MARKETING
    Parkland FuelPKI41.92▲2.727.96
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Marathon Oil (MRO +4.1%)
  • Noble Energy (NBL +3.8%)
  • TechnipFMC (FTI +3.6%)
  • Helmerich & Payne (HP +3.4%)
  • Halliburton (HAL +2.9%)
  • 12-MO HIGHS
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Cabot O&G (COG -0.9%)
  • Pioneer Natural Res (PXD -0.9%)
  • HollyFrontier (HFC -0.3%)
  • Phillips 66 (PSX -0.1%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM81.73▲1.264.65
     
    87.36D   W
    ChevronCVX124.94▲1.4100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI20.04▲0.214.62
     
    20.44D   W
    Williams CoWMB29.27▲1.920.36
     
    32.22D   W
    ONEOKOKE70.35▲0.750.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP67.69▲1.356.57
     
    80.24D   W
    EOG ResourcesEOG96.94▲1.982.04
     
    133.53D   W
    Occidental PetroOXY67.18▲1.556.83
     
    87.67D   W
    Anadarko PetroAPC45.99▲1.140.40
     
    76.70D   W
    Pioneer Natural ResPXD150.99▼-0.9119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB44.76▲2.734.99
     
    75.43D   W
    HalliburtonHAL30.14▲2.924.70
     
    54.91D   W
    Baker HughesBHGE27.84▲0.420.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV27.24▲2.324.27
     
    49.08D   W
    TechnipFMCFTI24.36▲3.618.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC61.05▲2.054.29
     
    88.45D   W
    Phillips 66PSX95.07▼-0.178.44
     
    123.97D   W
    Valero EnergyVLO86.43▲1.968.81
     
    126.98D   W
    HollyFrontierHFC49.12▼-0.346.75
     
    83.28D   W
    NYSE ADRs
    COMPANY TICKER CLOSE %CHG L 52WK H CHART
    Royal Dutch ShellRDS.A63.28▲1.155.04
     
    73.86D   W
    TotalTOT56.22▲1.049.70
     
    65.69D   W
    BPBP44.09▲0.936.28
     
    47.83D   W
    EniE35.56▲0.929.75
     
    40.15D   W
    EquinorEQNR22.30▲1.519.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • None

    DOWNGRADES

    • Kinder Morgan (KMI): Downgraded from Buy to Hold at Jefferies Financial.

    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
    WTI continues to play catch-up with Brent, as differential falls below US$7 a barrel

    WTI continues to play catch-up with Brent, as differential falls below US$7 a barrel

    Oil prices move higher on Friday, helping WTI finally crack US$60

    Oil prices move higher on Friday, helping WTI finally crack US$60

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