Oil prices spike higher as U.S. aims to cut Iranian exports to zero

Oil prices spike higher as U.S. aims to cut Iranian exports to zero

Today's energy market action:

  • As expected, the Trump Administration announced an end to all Iranian crude import waivers, once the current waivers expire on May 1. Last November, the US government granted 6-month waivers to eight countries, including Iran's largest buyers - China and India. The Americans say they have been working with Saudi Arabia and the United Arab Emirates to make sure oil markets are "adequately supplied."

  • The news sent oil prices shooting up almost 3%. Differentials on Canadian crude were little changed for the day.

  • Gasoline and heating oil also rose about 2%. Henry Hub ended the day almost 3% higher.

Today's treasury, currency and equity market action:

  • Treasury and currency markets were little changed on Monday. Markets in Europe, the UK and Hong Kong were closed for Easter Monday.

  • In New York, the NYSE and S&P 500 were roughly unchanged. Energy was the best performing sector in US markets, rising over 2%.

  • In Toronto, the TSX slipped 0.2%, despite a 1.6% gain in energy stocks.

Today's notable energy news:

  • BP and its partners announced the sanctioning of their US$6 billion Azeri Central East development offshore Azerbaijan. The project includes a new offshore platform and facilities designed to process up to 100,000 bbl/day of oil. The project is expected to come online in 2023.

  • Energy Transfer and Phillips 66 Partners announced a non-binding open season for expanded capacity on the Bayou Bridge Pipeline System. Bayou Bridge transports 480,000 bbl/day of crude to refineries along the Gulf Coast.

  • Chevron has asked Petrobras to confirm its Pasadena refinery in Texas is fully-functioning, before it takes possession of the facility. Chevron purchased the 112,200 bbl/day facility for US$350 million last January. The company was set to take over operatorship of the refinery earlier this month, but the transfer was delayed due to a planned maintenance turnaround.

  • ExxonMobil announced a 20-year sales and purchase agreement with Zhejiang Provincial Energy for 1 million t/y of LNG. Zhejiang Energy will build an LNG import terminal in China's Ningbo-Zhoushan region.

  • Houston-based McDermott International announced a contract by Kuwait Petroleum Corp, for its Petrochemical Refinery Integration Project in Al Zour, Kuwait. Financial terms of the deal were not disclosed.

Today's first quarter earnings results:

  • PrairieSky Royalty reported Q1 revenues of $73.2 million, up 8%y/y. Net profits jumped 33% to $26.4 million. Royalty production averaged 22,007 boe/day in Q1, weighted 52% liquids, down 6% y/y.

  • Halliburton reported a Q1 net profit of US$152 million, more than triple the same time last year. Total revenues were unchanged at US$5.7 billion, as a 7% drop in North American revenues offset an 11% gain in international contracts. CEO Jeff Miller says he believes "the worst in the pricing deterioration is now behind us."

  • Texas-based Range Resources reported a net profit of US$1.4 million, including a US$62 million hedging loss. Revenues rose 1% y/y to US$748 million. First quarter production averaged 2.26 Bcfe/day.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$74.04▲2.950.47
 
86.29
WTI$65.70▲2.742.53
 
76.41
CDN LT$60.70▲2.920.83
 
69.32
C5+$60.70▲2.937.04
 
71.40
WCS$55.10▲3.212.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ APR 22   █ APR 15   █ APR 8   █ APR 1   (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
  • Crescent Point (CPG +7.5%)
  • Enerplus (ERF +6.9%)
  • Baytex Energy (BTE +6.8%)
  • TORC O&G (TOG +5.3%)
  • Nuvista Energy (NVA +5.2%)
  • 12-MO HIGHS
  • Enbridge (ENB +0.1%)
  • TransCanada (TRP +1.3%)
  • Pembina Pipeline (PPL +0.8%)
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Cdn Natural Res (CNQ -1.1%)
  • Inter Pipeline (IPL -0.5%)
  • Keyera (KEY 0%)
  • Gibson Energy (GEI 0%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU45.35▲2.035.53
     
    55.47D   W
    Imperial OilIMO39.61▲0.633.52
     
    44.91D   W
    Husky EnergyHSE14.65▲1.113.21
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB49.84▲0.137.36
     
    50.06D   W
    TransCanadaTRP63.46▲1.347.90
     
    63.49D   W
    Pembina PipelinePPL50.35▲0.839.15
     
    50.48D   W
    Inter PipelineIPL22.22▼-0.518.60
     
    25.66D   W
    Keyera KEY32.29▼0.024.05
     
    38.91D   W
    Gibson EnergyGEI23.330.016.15
     
    23.75D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ41.49▼-1.130.11
     
    49.08D   W
    Cenovus EnergyCVE13.94▲3.38.74
     
    14.84D   W
    EncanaECA9.98▲2.96.90
     
    18.54D   W
    TourmalineTOU21.84▲2.215.84
     
    26.19D   W
    Vermilion EnergyVET36.41▲3.126.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI20.51▲2.217.18
     
    24.57D   W
    EnerflexEFX19.84▲2.613.55
     
    20.38D   W
    Mullen Group MTL12.16▲1.211.26
     
    16.93D   W
    ShawcorSCL20.37▲1.915.11
     
    28.89D   W
    Secure EnergySES8.58▲1.56.25
     
    9.44D   W
    REFINING & MARKETING
    Parkland FuelPKI41.13▲3.528.78
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Marathon Oil (MRO +6.6%)
  • Devon Energy (DVN +4.7%)
  • Baker Hughes (BHGE +3.8%)
  • Diamondback (FANG +3.7%)
  • Valero Energy (VLO +3.5%)
  • 12-MO HIGHS
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Anadarko Petro (APC -0.2%)
  • Halliburton (HAL -0.1%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM82.90▲2.264.65
     
    87.36D   W
    ChevronCVX121.90▲1.7100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI20.03▲3.314.62
     
    20.44D   W
    Williams CoWMB28.76▲1.620.36
     
    32.22D   W
    ONEOKOKE69.93▲1.150.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP66.96▲1.656.75
     
    80.24D   W
    EOG ResourcesEOG107.07▲3.182.04
     
    133.53D   W
    Occidental PetroOXY63.05▲2.056.83
     
    87.67D   W
    Anadarko PetroAPC64.06▼-0.240.40
     
    76.70D   W
    Pioneer Natural ResPXD175.89▲0.5119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB45.85▲0.634.99
     
    75.43D   W
    HalliburtonHAL31.09▼-0.124.70
     
    54.91D   W
    Baker HughesBHGE26.60▲3.820.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV27.74▲2.924.27
     
    49.08D   W
    TechnipFMCFTI24.96▲2.118.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC61.13▲2.254.29
     
    88.45D   W
    Phillips 66PSX97.14▲1.878.44
     
    123.97D   W
    Valero EnergyVLO91.15▲3.568.81
     
    126.98D   W
    HollyFrontierHFC48.85▲3.346.75
     
    83.28D   W
    NYSE ADRs
    COMPANY TICKER CLOSE %CHG L 52WK H CHART
    Royal Dutch ShellRDS.A65.24▲1.655.04
     
    73.86D   W
    TotalTOT57.85▲2.049.70
     
    65.69D   W
    BPBP45.04▲1.536.28
     
    47.83D   W
    EniE35.21▲1.429.75
     
    40.15D   W
    EquinorEQNR23.88▲2.419.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • None

    DOWNGRADES

    • Anadarko Petroleum (APC): Downgraded from Overweight to Neutral at Piper Jaffray.

    • Occidental Petroleum (OXY): Downgraded from Buy to Neutral at Mizuho.

    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
    Oil prices return to October highs, as traders digest US crackdown of Iranian exports

    Oil prices return to October highs, as traders digest US crackdown of Iranian exports

    TSX energy stocks creep higher, locking in 2% gain for the week

    TSX energy stocks creep higher, locking in 2% gain for the week

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