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

Today's energy market action:

  • Oil prices posted another day of solid gains as traders digest the potential loss of another 1 million bbl/day of Iranian crude. The US admits it plans to add several million barrels of new output over the next few years, while its allies in Saudi Arabia also stand ready to boost production, if required.

  • Brent rose 0.6%, while WTI gained 0.9%. Both benchmarks are now back to the highs of late October 2018.

  • The heavy oil discount widened by US$1.15 a barrel, sending WCS lower by 1%. Differentials for Canadian Light and Edmonton Condensate were unchanged for the day.

  • Natural gas prices sank over 2%, reversing most of yesterday's gains.

Today's currency and equity market action:

  • The US dollar index rose 0.3% to 97.59. The loonie lost 45 basis points on Tuesday, ending the day at 74.46 cents.

  • Equity markets mostly posted gains on Tuesday, with the S&P 500, NASDAQ and TSX ending the day at all-time record highs. The NYSE and TSX both rose 0.6%.

  • Despite higher oil prices, the S&P 500 energy basket was unchanged on Tuesday, while the TSX energy sector rose 1.4%.

Today's notable energy news:

  • The American Petroleum Institute is forecasting a 6.9 million barrel gain in crude stockpiles for last week. Official numbers from the Energy Information Administration are due to be released Wednesday morning.

  • According to Teck Resources, the Fort Hills mine produced 145,000 bbl/day in the first quarter, well within guidance but considerably below nameplate due to Alberta's curtailment program. The company says it sees opportunity to debottleneck and expand production capacity by as much as 40,000 bbl/day, with minimal capital spending in the near term. 

  • Murphy Oil announced the acquisition of deep water Gulf of Mexico assets from LLOG Exploration Offshore and LLOG Bluewater Holdings for US$1.375 billion. The assets currently produce 38,000 boe/day, weighted 60% liquids, giving Murphy an additional 122 million boe of 2P reserves. The company says its Gulf of Mexico production is anticipated to average 85,000 boe/day this year.

  • Northern Oil and Gas has agreed to acquire several assets in the Williston Basin from VEN Bakken for US$165 million in cash and US$130 million in debt. The assets produce about 6,600 boe/day. VEN Bakken is a subsidiary of Flywheel Bakken, which is backed by Kayne Private Energy Income Funds

  • TechnipFMC was awarded a "significant" EPC and installation contract from ConocoPhillips for its TOR II development, located in the Norwegian North Sea. 

  • SRC Energy updated its 2019 production guidance from about  60,000 boe/day to between 63,000 and 66,000 boe/day. The company says it expects additional gas processing capacity to come online before this summer.

Today's first quarter earnings results:

  • Superior Energy Services reported a net loss of US$48 million in Q1, on revenues of US$467 million. The company says results were in line with expectations, as both pricing and utilization rates were weak last quarter, particularly in US onshore.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$74.51▲0.650.47
 
86.29
WTI$66.30▲0.942.53
 
76.41
CDN LT$61.30▲1.020.83
 
69.32
C5+$61.30▲1.037.04
 
71.40
WCS$54.55▼1.012.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ APR 23   █ APR 16   █ APR 9   █ APR 2   (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
  • Ensign Energy Svcs (ESI +5.1%)
  • PrairieSky (PSK +4.4%)
  • Parex Resources (PXT +3.5%)
  • Freehold Royalties (FRU +3.3%)
  • Kelt Exploration (KEL +2.8%)
  • 12-MO HIGHS
  • Enbridge (ENB +1.5%)
  • TransCanada (TRP +0.7%)
  • Pembina Pipeline (PPL +0.2%)
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Birchcliff Energy (BIR -1.1%)
  • ARC Resources (ARX -0.9%)
  • MEG Energy (MEG -0.8%)
  • Keyera (KEY -0.7%)
  • Peyto Exploration (PEY -0.7%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU45.93▲1.335.53
     
    55.47D   W
    Imperial OilIMO40.41▲2.033.52
     
    44.91D   W
    Husky EnergyHSE14.74▲0.613.21
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB50.61▲1.537.36
     
    50.63D   W
    TransCanadaTRP63.88▲0.747.90
     
    63.89D   W
    Pembina PipelinePPL50.46▲0.239.15
     
    50.65D   W
    Inter PipelineIPL22.45▲1.018.60
     
    25.66D   W
    Keyera KEY32.05▼-0.724.05
     
    38.91D   W
    Gibson EnergyGEI23.30▼-0.116.15
     
    23.75D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ42.17▲1.630.11
     
    49.08D   W
    Cenovus EnergyCVE14.01▲0.58.74
     
    14.84D   W
    EncanaECA10.24▲2.66.90
     
    18.54D   W
    TourmalineTOU22.30▲2.115.84
     
    26.19D   W
    Vermilion EnergyVET36.66▲0.726.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI20.54▲0.217.18
     
    24.57D   W
    EnerflexEFX19.74▼-0.513.55
     
    20.38D   W
    Mullen Group MTL12.11▼-0.411.26
     
    16.93D   W
    ShawcorSCL20.50▲0.615.11
     
    28.89D   W
    Secure EnergySES8.56▼-0.26.25
     
    9.44D   W
    REFINING & MARKETING
    Parkland FuelPKI42.13▲2.428.78
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • TechnipFMC (FTI +1.9%)
  • Concho Res (CXO +1.8%)
  • Cimarex Energy (XEC +1.1%)
  • Exxon Mobil (XOM +0.6%)
  • Diamondback (FANG +0.6%)
  • 12-MO HIGHS
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Baker Hughes (BHGE -2.5%)
  • Helmerich & Payne (HP -2.4%)
  • Apache (APA -1.8%)
  • Devon Energy (DVN -1.7%)
  • Occidental Petro (OXY -1.1%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM83.38▲0.664.65
     
    87.36D   W
    ChevronCVX122.02▲0.1100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI20.08▲0.414.62
     
    20.44D   W
    Williams CoWMB28.82▲0.220.36
     
    32.22D   W
    ONEOKOKE69.87▼-0.250.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP66.45▼-0.856.75
     
    80.24D   W
    EOG ResourcesEOG106.60▼-0.482.04
     
    133.53D   W
    Occidental PetroOXY62.36▼-1.156.83
     
    87.67D   W
    Anadarko PetroAPC63.99▼-0.340.40
     
    76.70D   W
    Pioneer Natural ResPXD175.72▼-0.1119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB45.89▲0.134.99
     
    75.43D   W
    HalliburtonHAL31.15▲0.224.70
     
    54.91D   W
    Baker HughesBHGE25.97▼-2.520.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV27.90▲0.524.27
     
    49.08D   W
    TechnipFMCFTI25.44▲1.918.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC61.06▼-0.154.29
     
    88.45D   W
    Phillips 66PSX97.40▲0.378.44
     
    123.97D   W
    Valero EnergyVLO90.28▼-0.968.81
     
    126.98D   W
    HollyFrontierHFC48.59▼-0.446.75
     
    83.28D   W
    NYSE ADRs
    COMPANY TICKER CLOSE %CHG L 52WK H CHART
    Royal Dutch ShellRDS.A65.00▼-0.455.04
     
    73.86D   W
    TotalTOT57.38▼-0.849.70
     
    65.69D   W
    BPBP45.02▼-0.136.28
     
    47.83D   W
    EniE35.36▲0.529.75
     
    40.15D   W
    EquinorEQNR23.68▼-0.819.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • None

    DOWNGRADES

    • None

    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 dip as crude stockpiles continue to build, and greenback breaks out to new highs

    Oil prices dip as crude stockpiles continue to build, and greenback breaks out to new highs

    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

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