WTI continues to play catch-up with Brent, as differential falls below US$7 a barrel
Today's energy and equity market action:
- A relatively good day for oil prices, despite a slight pullback in equity markets.
- Brent rose 0.5%, edging closer to the US$70 threshold, while WTI rose 1.6%. The spread between the two benchmarks shrank to US$6.80 a barrel, the lowest since last fall.
- Canada's light and heavy benchmarks both added another 2% for the day.
- Heating oil rose 1%, while gasoline prices gained 1.6%.
- In New York, the NYSE dipped 0.1%, while the S&P 500 was unchanged.
- The SPX energy sector declined 0.7%, giving back some of yesterday's gains. Except for select midstream names, most energy components ended Tuesday in the red.
- In Toronto, the TSX gained 0.2%, despite a 0.4% decline in energy stocks.
Today's notable energy news:
- The American Petroleum Institute is forecasting a 3.0 million barrel build in crude stockpiles for last week. Official numbers from the Energy Information Administration are due to be released tomorrow morning.
- Gibson Energy announced the sale of its Canadian trucking division to Trimac Transportation for about $100 million. The company has divested $325 million in non-core assets since the beginning of last year, and says it will now focus on its energy infrastructure business.
- The Trump Administration is considering additional sanctions on Iran, which would be timed to coincide with the one-year anniversary of its first round of sanctions. The US government also hinted it may pull waivers granted to Italy, Greece and Taiwan, preventing them from continuing to import Iranian crude.
- According to Reuters, ExxonMobil is reportedly in talks to divest its Nigerian onshore and offshore assets, estimated to be worth as much as US$3 billion. Exxon produces about 225,000 bbl/day in the West African country. The company is also looking to sell assets in Equatorial Guinea and Azerbaijan, as it seeks to redeploy capital in Guyana and its US shale properties.
- ExxonMobil also announced a multi-billion dollar expansion of its manufacturing complex in Singapore. The expansion will add 48,000 bbl/day of low-sulphur fuel, in compliance with upcoming IMO standards. Construction will begin later this year, with start-up expected in 2023. EPC contracts were awarded to Spain's Técnicas Reunidas and Wood Group.
- Total announced the start of production from its second FPSO in the Kaombo field, located offshore Angola. The new addition will bring total production to 230,000 boe/day, representing 15% of the country's total output. The field is jointly owned with state-owned Sonangol, as well as subsidiaries of Sinopec and ExxonMobil.
- Pembina Pipeline announced plans to issue $800 million in senior unsecured medium-term notes. Net proceeds will be used to repay funds borrowed from its credit facilities, capital spending and general corporate purposes.
|Suncor Energy||SU||43.97||▲0.3||35.53||55.47||D W|
|Imperial Oil||IMO||36.61||▼-0.1||33.43||44.91||D W|
|Husky Energy||HSE||13.44||▼-0.5||13.24||22.99||D W|
|Pembina Pipeline||PPL||50.13||▲0.9||37.60||50.45||D W|
|Inter Pipeline||IPL||22.09||▼-0.5||18.60||25.66||D W|
|Gibson Energy||GEI||23.43||▲2.1||15.90||23.63||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||37.15||▼-0.1||30.11||49.08||D W|
|Cenovus Energy||CVE||12.15||▲0.1||8.74||14.84||D W|
|Vermilion Energy||VET||33.10||▼-0.9||26.67||49.67||D W|
|Pason Systems||PSI||20.31||▲1.7||16.61||24.57||D W|
|Mullen Group||MTL||12.21||▲0.1||11.26||16.93||D W|
|Secure Energy||SES||8.43||▼-0.6||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||41.20||▼-1.7||27.96||47.45||D W|
|Exxon Mobil||XOM||81.38||▼-0.4||64.65||87.36||D W|
|Kinder Morgan||KMI||20.05||▲0.1||14.62||20.44||D W|
|Williams Co||WMB||29.35||▲0.3||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||96.05||▼-0.9||82.04||133.53||D W|
|Occidental Petro||OXY||66.63||▼-0.8||56.83||87.67||D W|
|Anadarko Petro||APC||45.24||▼-1.6||40.40||76.70||D W|
|Pioneer Natural Res||PXD||148.18||▼-1.9||119.08||213.40||D W|
|Baker Hughes||BHGE||26.99||▼-3.1||20.09||37.76||D W|
|Ntl-Oilwell Varco||NOV||27.16||▼-0.3||24.27||49.08||D W|
|Marathon Petro||MPC||59.92||▼-1.9||54.29||88.45||D W|
|Phillips 66||PSX||94.52||▼-0.6||78.44||123.97||D W|
|Valero Energy||VLO||84.45||▼-2.3||68.81||126.98||D W|
CNOOC (CEO): Downgraded from Buy to Neutral at UBS.
Frontera Energy (FEC.TO): Downgraded from Buy to Neutral at Eight Capital.
UPDATED: DAILY (END-OF-DAY)
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