Energy markets hit the pause button on Thursday
Today's energy market summary:
Oil prices all moved lower on Thursday, wiping out most of the gains made this week.
Brent declined 1.3%, while WTI fell 1.6%.
Canadian Light, WCS and Edmonton Condensate all declined almost 2%. Differentials on Canadian benchmarks were little changed for the day.
Gasoline also gave back 2%, while heating oil fell 1%.
Today's treasury and currency market action:
Positive economic data out of the US failed to boost markets on Thursday. Higher gas prices helped lift the US producer price index 0.6% for the month, lifting the yearly gain to 2.2%.
Despite better-than-expected results, US bond yields mostly moved lower. The US dollar nudged up 0.3%, the first gain this week.
The European Union has agreed to extend the Brexit deadline to the end of October. UK bond yields moved higher on the news, while the pound sterling dipped slightly.
The yen was the biggest loser in currency markets, falling 0.6% for the day. The Canadian dollar also fell back below 75 cents.
Today's equity market action:
US markets all took a tumble this morning, but mostly recovered by the end of the day.
The NYSE, Dow Jones Industrial, S&P 500 and TSX all ended Thursday unchanged.
Energy stocks were also unchanged in the US. The TSX energy sector dipped about 0.2%.
Today's supply/demand update:
According to the International Energy Agency (IEA), world oil supply declined 340,000 bbl/day in March, versus the previous month. OPEC production dropped 550,000 bbl/day to 30.1 million bbl/day last month, blamed mostly on lower output from Venezuela and Saudi Arabia. The IEA kept its global demand growth estimates unchanged.
Venezuelan output sank to a new low in March, due to US sanctions and widespread power outages. The OPEC member produced just 960,000 bbl/day last month, down 500,000 bbl/day from the previous month.
Today's notable energy news:
Pioneer Natural Resources CEO Scott Sheffield says total US output will hit 17 million bbl/day within 5 years, although pipeline bottlenecks are restraining growth in the near term. Total US production was estimated at a record 12.2 million bbl/day last week, According to the EIA, output is expected to top 15 million bbl/day by the early 2020s, but could rise to as much as 20 million bbl/day over the next two decades, if technology and oil prices keep pace.
Royal Dutch Shell announced the sale of its 22.5% stake in the Caesar Tonga field in the Gulf of Mexico for US$965 million to Israeli conglomerate Delek Group. Caesar Tonga produces about 70,000 boe/day, and is jointly-owned with Equinor, Chevron and operator ConocoPhillps. The deal is expected to close by the end of the third quarter.
The Trump Administration is threatening retaliatory measures against Spanish energy firm Repsol, for allegedly violating US sanctions against Venezuela. Repsol denies the accusations, and says it fully complies with all legislations and sanctions.
Poor drilling results have prompted BP to exit two shale gas production sharing agreements with China's CNPC. As many as 10 wells were drilled in China's Sichuan province, but the wells were found to be uneconomical. CEO Bob Dudley says the region faces "great challenges" due to complex geology. Shell, ExxonMobil, ConocoPhillips and Eni have also abandoned plans to explore for shale gas in the area, leaving only Chinese firms to continue exploration work.
Toronto-based Frontera Energy says 2019 "got off to a strong start," with first quarter production volumes tracking in line with guidance. The company says it produced almost 68,000 boe/day in Q1, despite outages in Peru. Frontera also announced plans to buyback 2.66 million shares. The bulk of Frontera's operations are in Columbia.
Equitrans Midstream and EQM Midstream Partners have closed on their acquisition of Hornet Midstream Holdings and a 60% stake in Eureka Midstream Holdings. The assets were purchased for US$830 million in cash and US$170 million in debt.
|Suncor Energy||SU||43.88||▼-0.3||35.53||55.47||D W|
|Imperial Oil||IMO||38.73||▲0.2||33.52||44.91||D W|
|Husky Energy||HSE||14.38||▲1.2||13.21||22.99||D W|
|Pembina Pipeline||PPL||50.06||▲0.2||39.15||50.48||D W|
|Inter Pipeline||IPL||22.27||▲0.9||18.60||25.66||D W|
|Gibson Energy||GEI||23.46||▼-0.2||16.15||23.75||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||39.59||▲0.2||30.11||49.08||D W|
|Cenovus Energy||CVE||13.19||▼-1.3||8.74||14.84||D W|
|Vermilion Energy||VET||34.02||▲0.1||26.67||49.67||D W|
|Pason Systems||PSI||20.37||▲1.3||17.18||24.57||D W|
|Mullen Group||MTL||12.41||▲2.9||11.26||16.93||D W|
|Secure Energy||SES||8.65||▲1.8||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||39.72||▼-1.1||28.61||47.45||D W|
|Exxon Mobil||XOM||81.95||▲0.5||64.65||87.36||D W|
|Kinder Morgan||KMI||19.92||▲0.4||14.62||20.44||D W|
|Williams Co||WMB||28.76||▲0.4||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||98.73||0.0||82.04||133.53||D W|
|Occidental Petro||OXY||67.18||0.0||56.83||87.67||D W|
|Anadarko Petro||APC||46.80||▼0.0||40.40||76.70||D W|
|Pioneer Natural Res||PXD||150.92||▲0.3||119.08||213.40||D W|
|Baker Hughes||BHGE||26.66||▼-0.8||20.09||37.76||D W|
|Ntl-Oilwell Varco||NOV||29.33||▲2.3||24.27||49.08||D W|
|Marathon Petro||MPC||63.11||▼-0.8||54.29||88.45||D W|
|Phillips 66||PSX||98.51||▼-0.1||78.44||123.97||D W|
|Valero Energy||VLO||89.04||▲0.7||68.81||126.98||D W|
UPDATED: DAILY (END-OF-DAY)
• OIL PRICES REFLECT NEAR MONTH CONTRACT FROM THE NYMEX/CME GROUP
• EQUITY PRICES PROVIDED BY NYSE & TMX GROUP
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• 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