WTI continues to play catch-up with Brent, as differential falls below US$7 a barrel

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.
OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$69.37▲0.550.47
 
86.29
WTI$62.58▲1.642.53
 
76.41
CDN LT$58.86▲2.020.83
 
69.32
C5+$58.43▲0.837.04
 
71.40
WCS$54.38▲2.012.59
 
56.21

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ APR 2   █ MAR 26   █ MAR 19   █ MAR 12   (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
  • Gibson Energy (GEI +2.1%)
  • Shawcor (SCL +1.9%)
  • Pason Systems (PSI +1.7%)
  • Pembina Pipeline (PPL +0.9%)
  • Kelt Exploration (KEL +0.9%)
  • 12-MO HIGHS
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Encana (ECA -2.9%)
  • Enerplus (ERF -2.9%)
  • Gran Tierra (GTE -2.9%)
  • Crescent Point (CPG -2.8%)
  • ARC Resources (ARX -2.6%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU43.97▲0.335.53
     
    55.47D   W
    Imperial OilIMO36.61▼-0.133.43
     
    44.91D   W
    Husky EnergyHSE13.44▼-0.513.24
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB48.86▲0.837.36
     
    49.70D   W
    TransCanadaTRP61.10▲0.147.90
     
    61.47D   W
    Pembina PipelinePPL50.13▲0.937.60
     
    50.45D   W
    Inter PipelineIPL22.09▼-0.518.60
     
    25.66D   W
    Keyera KEY31.35▼-0.224.05
     
    38.91D   W
    Gibson EnergyGEI23.43▲2.115.90
     
    23.63D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ37.15▼-0.130.11
     
    49.08D   W
    Cenovus EnergyCVE12.15▲0.18.74
     
    14.84D   W
    EncanaECA9.60▼-2.96.90
     
    18.54D   W
    TourmalineTOU20.71▲0.315.84
     
    26.19D   W
    Vermilion EnergyVET33.10▼-0.926.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI20.31▲1.716.61
     
    24.57D   W
    EnerflexEFX19.54▲0.213.55
     
    20.38D   W
    Mullen Group MTL12.21▲0.111.26
     
    16.93D   W
    ShawcorSCL21.27▲1.915.11
     
    28.89D   W
    Secure EnergySES8.43▼-0.66.25
     
    9.44D   W
    REFINING & MARKETING
    Parkland FuelPKI41.20▼-1.727.96
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Williams Co (WMB +0.3%)
  • Cabot O&G (COG +0.1%)
  • Kinder Morgan (KMI +0.1%)
  • 12-MO HIGHS
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Baker Hughes (BHGE -3.1%)
  • Valero Energy (VLO -2.3%)
  • Cimarex Energy (XEC -2.1%)
  • ConocoPhillips (COP -2%)
  • Apache (APA -2%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM81.38▼-0.464.65
     
    87.36D   W
    ChevronCVX124.93▼0.0100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI20.05▲0.114.62
     
    20.44D   W
    Williams CoWMB29.35▲0.320.36
     
    32.22D   W
    ONEOKOKE70.21▼-0.250.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP66.35▼-2.056.57
     
    80.24D   W
    EOG ResourcesEOG96.05▼-0.982.04
     
    133.53D   W
    Occidental PetroOXY66.63▼-0.856.83
     
    87.67D   W
    Anadarko PetroAPC45.24▼-1.640.40
     
    76.70D   W
    Pioneer Natural ResPXD148.18▼-1.9119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB44.49▼-0.634.99
     
    75.43D   W
    HalliburtonHAL29.94▼-0.724.70
     
    54.91D   W
    Baker HughesBHGE26.99▼-3.120.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV27.16▼-0.324.27
     
    49.08D   W
    TechnipFMCFTI23.96▼-1.718.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC59.92▼-1.954.29
     
    88.45D   W
    Phillips 66PSX94.52▼-0.678.44
     
    123.97D   W
    Valero EnergyVLO84.45▼-2.368.81
     
    126.98D   W
    HollyFrontierHFC48.84▼-0.646.75
     
    83.28D   W
    NYSE ADRs
    COMPANY TICKER CLOSE %CHG L 52WK H CHART
    Royal Dutch ShellRDS.A63.51▲0.455.04
     
    73.86D   W
    TotalTOT55.96▼-0.549.70
     
    65.69D   W
    BPBP44.23▲0.336.28
     
    47.83D   W
    EniE35.42▼-0.429.75
     
    40.15D   W
    EquinorEQNR22.27▼-0.119.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • None

    DOWNGRADES

    • CNOOC (CEO): Downgraded from Buy to Neutral at UBS.

    • Frontera Energy (FEC.TO): Downgraded from Buy to Neutral at Eight Capital.

    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
    Energy stocks drag to the downside on Wednesday

    Energy stocks drag to the downside on Wednesday

    Better than expected Chinese economic data sends oil prices and energy stocks higher

    Better than expected Chinese economic data sends oil prices and energy stocks higher

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