Energy markets hit the pause button on Thursday

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.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$70.83▼1.350.47
 
86.29
WTI$63.58▼1.642.53
 
76.41
CDN LT$59.84▼1.820.83
 
69.32
C5+$59.45▼1.737.04
 
71.40
WCS$55.16▼2.012.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ APR 11   █ APR 4   █ MAR 28   █ MAR 21   (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
  • Mullen Group (MTL +2.9%)
  • Secure Energy (SES +1.8%)
  • Pason Systems (PSI +1.3%)
  • Enbridge (ENB +1.3%)
  • Tourmaline (TOU +1.2%)
  • 12-MO HIGHS
  • Enbridge (ENB +1.3%)
  • TransCanada (TRP +0.5%)
  • Pembina Pipeline (PPL +0.2%)
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Seven Generations (VII -2.3%)
  • Whitecap Res (WCP -2.1%)
  • Birchcliff Energy (BIR -1.5%)
  • MEG Energy (MEG -1.5%)
  • Precision Drilling (PD -1.4%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU43.88▼-0.335.53
     
    55.47D   W
    Imperial OilIMO38.73▲0.233.52
     
    44.91D   W
    Husky EnergyHSE14.38▲1.213.21
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB49.65▲1.337.36
     
    49.82D   W
    TransCanadaTRP61.95▲0.547.90
     
    62.37D   W
    Pembina PipelinePPL50.06▲0.239.15
     
    50.48D   W
    Inter PipelineIPL22.27▲0.918.60
     
    25.66D   W
    Keyera KEY32.70▲0.324.05
     
    38.91D   W
    Gibson EnergyGEI23.46▼-0.216.15
     
    23.75D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ39.59▲0.230.11
     
    49.08D   W
    Cenovus EnergyCVE13.19▼-1.38.74
     
    14.84D   W
    EncanaECA9.57▼-0.76.90
     
    18.54D   W
    TourmalineTOU21.49▲1.215.84
     
    26.19D   W
    Vermilion EnergyVET34.02▲0.126.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI20.37▲1.317.18
     
    24.57D   W
    EnerflexEFX19.57▲0.813.55
     
    20.38D   W
    Mullen Group MTL12.41▲2.911.26
     
    16.93D   W
    ShawcorSCL20.74▼-1.315.11
     
    28.89D   W
    Secure EnergySES8.65▲1.86.25
     
    9.44D   W
    REFINING & MARKETING
    Parkland FuelPKI39.72▼-1.128.61
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Ntl-Oilwell Varco (NOV +2.3%)
  • HollyFrontier (HFC +1%)
  • Valero Energy (VLO +0.7%)
  • Halliburton (HAL +0.5%)
  • Exxon Mobil (XOM +0.5%)
  • 12-MO HIGHS
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Diamondback (FANG -3.8%)
  • Concho Res (CXO -2.8%)
  • Marathon Oil (MRO -1.5%)
  • Cimarex Energy (XEC -1.1%)
  • ConocoPhillips (COP -0.9%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM81.95▲0.564.65
     
    87.36D   W
    ChevronCVX125.99▲0.4100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI19.92▲0.414.62
     
    20.44D   W
    Williams CoWMB28.76▲0.420.36
     
    32.22D   W
    ONEOKOKE70.04▲0.450.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP66.37▼-0.956.75
     
    80.24D   W
    EOG ResourcesEOG98.730.082.04
     
    133.53D   W
    Occidental PetroOXY67.180.056.83
     
    87.67D   W
    Anadarko PetroAPC46.80▼0.040.40
     
    76.70D   W
    Pioneer Natural ResPXD150.92▲0.3119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB45.31▼-0.534.99
     
    75.43D   W
    HalliburtonHAL31.20▲0.524.70
     
    54.91D   W
    Baker HughesBHGE26.66▼-0.820.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV29.33▲2.324.27
     
    49.08D   W
    TechnipFMCFTI24.72▼-0.418.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC63.11▼-0.854.29
     
    88.45D   W
    Phillips 66PSX98.51▼-0.178.44
     
    123.97D   W
    Valero EnergyVLO89.04▲0.768.81
     
    126.98D   W
    HollyFrontierHFC50.48▲1.046.75
     
    83.28D   W
    NYSE ADRs
    COMPANY TICKER CLOSE %CHG L 52WK H CHART
    Royal Dutch ShellRDS.A64.92▼-0.155.04
     
    73.86D   W
    TotalTOT56.38▼-0.749.70
     
    65.69D   W
    BPBP44.87▼-0.436.28
     
    47.83D   W
    EniE35.75▼-0.629.75
     
    40.15D   W
    EquinorEQNR22.98▼-0.519.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • None

    DOWNGRADES

    • None

    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
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