WCS stumbles over 2% as heavy oil discount moves back above US$10 a barrel

WCS stumbles over 2% as heavy oil discount moves back above US$10 a barrel

Today's energy market action:

  • Oil prices gained ground on Tuesday, reversing most of Monday's losses.

  • Brent rose 0.8% while WTI gained 1%, moving back above US$64 a barrel.

  • Differentials on Canadian benchmarks widened on Tuesday, due to yesterday's expiry of the May contracts. Discounts on Canadian Light and Edmonton Condensate (C5+) widened by over US$1, ending the day at US$5 a barrel. The heavy oil discount widened by almost US$2, sending WCS down 2.2%. The May contract for WTI expires next Monday.

  • Gasoline prices were unchanged while heating oil rose 1%.

Today's treasury, currency and equity market action:

  • Bond yields moved higher in the US, particularly on the longer end of the curve. The greenback and loonie both managed to edge up 0.1%.

  • After being little changed on Monday, US and Canadian stock markets were again little changed on Tuesday, including the NYSE, S&P 500 and TSX

  • Markets were in offensive mode, with precious metals and interest-rate sensitive stocks leading to the downside.

  • On the TSX, gains in Imperial Oil and Canadian Natural Resources help offset losses among most other TSX energy components. The SPX energy sector had a better day, with only the refining subsector posting a loss.

Today's supply and demand update:

  • The American Petroleum Institute is forecasting a 3.1 million barrel decline in crude stockpiles for last week. Gasoline stockpiles are also expected to show another sizeable decline. Official numbers from the Energy Information Administration are due to be released Wednesday morning.

  • The head of Gazprom Neft weighed in on Russia's production pact with OPEC today, noting he expects the agreement to be terminated by the summer. The deputy CEO says he expects output to rise 1.5% in the second half of the year, but OPEC and its allies should continue to coordinate on their production plans.

  • According to Reuters, Iranian exports are tracking below 1 million bbl/day, down more than 10% from the previous month, and down from 2.5 million bbl/day for the same time last year. The Trump Administration had granted waivers to China, India, Greece, Italy, Taiwan, Japan, Turkey and South Korea, allowing them to continue importing Iranian crude until May. However, the US government has already warned some of those exemptions may not be extended.

Today's notable energy news:

  • Secure Energy Services announced the acquisition of a 27% interest in a crude oil storage facility in Cushing, consisting of four above-ground 175,000 barrel tanks, as well as a 51% interest in an adjacent parcel of undeveloped land. The assets were purchased for US$10.4 million in cash.

  • Bellatrix Exploration plans to meet with bondholders on May 23rd to vote on its previously-announced plan to convert some of its debt into new shares. The company says the new arrangement will save it over $12 million in interest annually.

  • ExxonMobil and Qatar Petroleum were awarded three exploration blocks offshore Argentina. The blocks are located in the Malvinas basin, about 320 km off the coast of Tierra del Fuego. ExxonMobil will operate the block and hold a 70% stake.

  • After being shut-in earlier this month due to a gas leak, Equinor’s Aasta Hansteen gas field in the Norwegian Sea is expected to restart on Wednesday. The field has the capacity to produce 23 million m³/day, but will likely be running at half capacity for now. Aasta Hansteen is co-owned with OMV, Wintershall and ConocoPhillips.

  • ConocoPhillips has closed on the sale of its 20% stake in the Greater Sunrise Fields to the government of Timor-Leste for US$350 million. The gas and condensate fields are located in the Timor Sea.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$71.72▲0.850.47
 
86.29
WTI$64.05▲1.042.53
 
76.41
CDN LT$59.05▼1.020.83
 
69.32
C5+$59.05▼0.737.04
 
71.40
WCS$53.70▼2.212.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ APR 16   █ APR 9   █ APR 2   █ MAR 26   (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
  • Cdn Natural Res (CNQ +2.3%)
  • Precision Drilling (PD +2.2%)
  • Ensign Energy Svcs (ESI +2.1%)
  • MEG Energy (MEG +1.3%)
  • Parex Resources (PXT +1.3%)
  • 12-MO HIGHS
  • Enbridge (ENB -0.5%)
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Crescent Point (CPG -4.1%)
  • Kelt Exploration (KEL -3.6%)
  • Nuvista Energy (NVA -3.2%)
  • Seven Generations (VII -2.9%)
  • Baytex Energy (BTE -2.4%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU43.94▼-0.435.53
     
    55.47D   W
    Imperial OilIMO39.39▲1.333.52
     
    44.91D   W
    Husky EnergyHSE14.20▲0.213.21
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB49.62▼-0.537.36
     
    50.01D   W
    TransCanadaTRP62.100.047.90
     
    62.37D   W
    Pembina PipelinePPL49.92▼-0.339.15
     
    50.48D   W
    Inter PipelineIPL22.29▼-0.218.60
     
    25.66D   W
    Keyera KEY32.30▼-1.124.05
     
    38.91D   W
    Gibson EnergyGEI23.50▼-0.116.15
     
    23.75D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ40.51▲2.330.11
     
    49.08D   W
    Cenovus EnergyCVE13.16▲0.78.74
     
    14.84D   W
    EncanaECA9.73▼-1.26.90
     
    18.54D   W
    TourmalineTOU21.56▼-0.215.84
     
    26.19D   W
    Vermilion EnergyVET35.31▲0.326.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI20.40▼-1.417.18
     
    24.57D   W
    EnerflexEFX19.31▼-1.313.55
     
    20.38D   W
    Mullen Group MTL12.07▼-0.111.26
     
    16.93D   W
    ShawcorSCL20.08▼-1.215.11
     
    28.89D   W
    Secure EnergySES8.37▼-0.66.25
     
    9.44D   W
    REFINING & MARKETING
    Parkland FuelPKI39.29▼-2.428.78
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Helmerich & Payne (HP +2.8%)
  • Noble Energy (NBL +2.4%)
  • Anadarko Petro (APC +2.1%)
  • Pioneer Natural Res (PXD +2.1%)
  • Schlumberger (SLB +2%)
  • 12-MO HIGHS
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Ntl-Oilwell Varco (NOV -1.3%)
  • HollyFrontier (HFC -1.1%)
  • Marathon Petro (MPC -0.9%)
  • ConocoPhillips (COP -0.8%)
  • Baker Hughes (BHGE -0.4%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM81.20▲0.764.65
     
    87.36D   W
    ChevronCVX121.17▲0.9100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI19.81▲0.114.62
     
    20.44D   W
    Williams CoWMB28.63▲0.420.36
     
    32.22D   W
    ONEOKOKE70.24▲0.250.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP65.84▼-0.856.75
     
    80.24D   W
    EOG ResourcesEOG102.35▲0.382.04
     
    133.53D   W
    Occidental PetroOXY63.67▲0.556.83
     
    87.67D   W
    Anadarko PetroAPC63.60▲2.140.40
     
    76.70D   W
    Pioneer Natural ResPXD171.24▲2.1119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB47.34▲2.034.99
     
    75.43D   W
    HalliburtonHAL31.81▲1.724.70
     
    54.91D   W
    Baker HughesBHGE25.84▼-0.420.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV27.18▼-1.324.27
     
    49.08D   W
    TechnipFMCFTI24.60▲0.718.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC60.02▼-0.954.29
     
    88.45D   W
    Phillips 66PSX95.98▼-0.278.44
     
    123.97D   W
    Valero EnergyVLO88.32▲0.768.81
     
    126.98D   W
    HollyFrontierHFC48.00▼-1.146.75
     
    83.28D   W
    NYSE ADRs
    COMPANY TICKER CLOSE %CHG L 52WK H CHART
    Royal Dutch ShellRDS.A64.30▼-0.455.04
     
    73.86D   W
    TotalTOT55.68▼-1.249.70
     
    65.69D   W
    BPBP44.48▼-0.536.28
     
    47.83D   W
    EniE34.79▼-1.429.75
     
    40.15D   W
    EquinorEQNR23.05▼-0.219.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • Cenovus Energy (CVE.TO): Upgraded from Sell to Neutral at Goldman Sachs.

    • Energy Transfer LP Unit (ET): Upgraded from Outperform to Strong Buy at Raymond James.

    • FTS International (FTSI): Upgraded from Neutral to Buy at BofA.

    • Marathon Oil (MRO): Upgraded from Sector Perform to Outperform at RBC.

    • Quintana Energy Services (QES): Upgraded from Neutral to Buy at BofA.

    • TC Pipelines (TCP): Upgraded from Underweight to Equal Weight at Barclays.

    DOWNGRADES

    • Anadarko Petroleum (APC): Downgraded from Buy to Hold at Argus.

    • Antero Midstream Partners (AM): Downgraded from Strong Buy to Outperform at Raymond James.

    • BP (BP): Downgraded from Top Pick to Outperform at RBC.

    • Delek US (DK): Downgraded from Buy to Neutral at Goldman Sachs.

    • Global Partners (GLP): Downgraded from Equal Weight to Underweight at Barclays.

    • HollyFrontier (HFC): Downgraded from Neutral to Sell at Goldman Sachs.

    • Kinder Morgan (KMI): Downgraded from Strong Buy to Outpeform at Raymond James.

    • Mplx (MPLX): Downgraded from Strong Buy to Outperform at Raymond James.

    • SemGroup (SEMG): Downgraded from Equal Weight to Underweight at Barclays.

    • Sprague Resources (SRLP): Downgraded from Outperform to Market Perform at Raymond James.

    • Sunoco (SUN): Downgraded from Overweight to Equal Weight at Barclays.

    • Targa Resources (TRGP): Downgraded from Strong Buy to Outperform at Raymond James.

    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
    Alberta's heavy oil producers post solid gains on Wednesday, despite lower WCS prices

    Alberta's heavy oil producers post solid gains on Wednesday, despite lower WCS prices

    Energy markets kick-off the new week on a sour note

    Energy markets kick-off the new week on a sour note

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