Energy markets kick-off the new week on a sour note
Today's energy market summary:
Energy stocks and commodities began the new week mostly flat to lower.
WTI and the Canadian crude benchmarks declined almost 1%, while Brent slipped 0.5%.
The heavy and light oil discounts were unchanged, ending the day at US$8.50 and US$3.80 a barrel, respectively.
The differential for Edmonton Condensate narrowed to just under US$4 a barrel, moving the price of C5+ below Canadian Light.
Gasoline prices also retreated about 1.2% for the day.
Today's currency and equity market action:
In its latest Business Outlook Survey, the Bank of Canada says the economy is "moderating" from a previously robust picture, citing weakness in housing and the energy patch. No rate hikes are expected this year, with some economists calling for a rate cut if the weakness persists. The Canadian dollar slip 25 basis points, ending Monday back below 75 cents.
The US dollar and most other major currencies were unchanged for the day.
Despite small gains made in Japan and Europe overnight, US and Canadian markets were little moved on Monday.
The NYSE, NASDAQ, S&P 500 and Dow Jones Industrial Average all dipped 0.1%. In Toronto, the TSX gained 0.2%.
Energy declined 0.5% on the TSX and 0.6% on the S&P 500. Except for a handful of stocks, most energy components posted losses for the day.
Today's notable energy news:
In an interview with state media over the weekend, Russia's finance minister floated the idea of boosting oil output to intentionally sink oil prices for up to one year, in turn flushing out less viable US producers. The minister admits he's not sure if OPEC would go along with the plan. OPEC and Russia meet on June 25/26 to discuss whether or not to extend their production pact.
Analysts were busy digesting the Anadarko-Chevron deal over the weekend, leading to several downgrades and price target changes. Consensus is that the deal was fair, not overpriced, and not likely to be challenged by another bidder.
CNBC is now reporting that Occidental Petroleum had offered Anadarko about US$75 a share, structured 40% cash, making it far superior to Chevron's bid. Negotiations were reportedly still ongoing when Anadarko suddenly announced a deal with Chevron on Friday afternoon. The company is still mulling a hostile takeover, although most analysts are seeing that as being unlikely, given Occidental's market cap of just US$47.5 billion.
Concho Resources and Frontier Midstream have formed a new 50/50 joint-venture named Beta Crude Connector, a new gathering and transportation system, which includes 250,000 barrels of crude storage facilities and truck terminals in the Northern Midland Basin. A new 150,000 bbl/day pipeline system will deliver crude to local refineries and connect to several downstream pipelines. Frontier will operate the assets.
Calgary-based Vermilion Energy announced plans to drill two exploration wells in Croatia this summer, in one of four licences it was awarded in 2015. The company says it sees "evidence of gas charge" from seismic data, but it has no idea if the fields are commercially viable.
|Suncor Energy||SU||44.11||▼-0.3||35.53||55.47||D W|
|Imperial Oil||IMO||38.90||▲0.3||33.52||44.91||D W|
|Husky Energy||HSE||14.17||▲0.1||13.21||22.99||D W|
|Pembina Pipeline||PPL||50.06||▲0.0||39.15||50.48||D W|
|Inter Pipeline||IPL||22.33||▲0.3||18.60||25.66||D W|
|Gibson Energy||GEI||23.53||▼-0.6||16.15||23.75||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||39.61||▼-0.4||30.11||49.08||D W|
|Cenovus Energy||CVE||13.07||▼-0.9||8.74||14.84||D W|
|Vermilion Energy||VET||35.22||▲0.3||26.67||49.67||D W|
|Pason Systems||PSI||20.69||▼-0.1||17.18||24.57||D W|
|Mullen Group||MTL||12.08||0.0||11.26||16.93||D W|
|Secure Energy||SES||8.42||0.0||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||40.25||▲0.3||28.78||47.45||D W|
|Exxon Mobil||XOM||80.65||▼-0.4||64.65||87.36||D W|
|Kinder Morgan||KMI||19.79||▼-0.2||14.62||20.44||D W|
|Williams Co||WMB||28.53||▼-1.4||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||102.12||▼-2.8||82.04||133.53||D W|
|Occidental Petro||OXY||63.36||▼-3.0||56.83||87.67||D W|
|Anadarko Petro||APC||62.26||▲0.6||40.40||76.70||D W|
|Pioneer Natural Res||PXD||167.74||▼-0.3||119.08||213.40||D W|
|Baker Hughes||BHGE||25.95||▼-1.6||20.09||37.76||D W|
|Ntl-Oilwell Varco||NOV||27.53||▲2.5||24.27||49.08||D W|
|Marathon Petro||MPC||60.54||▼-1.7||54.29||88.45||D W|
|Phillips 66||PSX||96.24||▼-1.0||78.44||123.97||D W|
|Valero Energy||VLO||87.65||▼-0.9||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
• 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