Oil prices retreat after Trump makes public plea to OPEC

Oil prices retreat after Trump makes public plea to OPEC

Today's energy market action:

  • After touching an almost 2-year high earlier this week, President Trump once again publicly called on OPEC to lower oil prices. The news sent both Brent and WTI lower by almost 3% for the day.

  • Canadian crude benchmarks declined in sympathy with WTI, also falling over 3%. Discounts on Canadian light and heavy crude were unchanged, while the condensate discount narrowed by US$0.65.

  • Baker Hughes reported another big drop in US oil rig counts this week, estimated to have fallen by 20, leaving 805 rigs in service. Canada currently has 19 oil rigs in service, unchanged from the previous week.

Today's treasury, currency and equity market action:

  • According to Statistics Canada, average weekly earnings were once again unchanged in February, dropping the annualized increase from 2% to just 1.1%, well below the national inflation rate. The loonie perked up slightly on Friday, but ended the week down almost 0.5 cents from the previous week.

  • First quarter US GDP growth was estimated at 3.2%, much better than economists were forecasting. Despite the positive results, US bonds yields and the US dollar both moved lower on Friday.

  • Except for Shanghai and London, most major markets moved higher on Friday. The NYSE rose 0.6%, while the S&P 500 gained 0.5%. The S&P 500 and NASDAQ closed out the week at a new all-time record high.

  • Energy was the biggest drag on US markets, due in part to dismal earnings results out of heavy-weights ExxonMobil and Chevron.

  • The TSX rose 0.2%, despite a 1.5% decline in energy stocks, also the worst performing sector for the day.

Today's notable energy news:

  • Russian officials have begun talks with Poland, Germany and the Ukraine in hopes of resuming crude shipments via the Druzhba pipeline. The 730,000 bbl/day pipeline was shut-in earlier this week due to concerns over high chloride content. Pipeline operator Transneft says the contamination could have been deliberate, and has launched a criminal investigation over the matter.

  • According to Bloomberg, investment firm D.E. Shaw has asked Anadarko Petroleum to open its books to additional suitors, in hopes of creating a bidding war. Occidental Petroleum is offering APC shareholders US$76 per share, topping Chevron's offer of US$65. D.E. Shaw owns 0.6% of Anadarko and 0.4% of Occidental.

Today's notable first quarter earnings results:

  • Husky Energy posted a net profit of $328 million, up 32% from the same quarter last year, despite lower upstream production and lower refinery throughput. Funds from operations rose 7% y/y to $959 million, while free cash flow fell 43% y/y to $147 million. Upstream production averaged 285,200 boe/day, down 6% from the previous quarter due to Alberta's mandated production cuts and outage of the White Rose oilfield offshore Newfoundland. CEO Rob Peabody says he is seeing strong interest in the company's Prince George Refinery and retail fuel business, which were recently put up for sale.

  • Imperial Oil reported a net profit of $293 million, down 43% from the same quarter last year. Total upstream production averaged 388,000 boe/day, up 5% y/y, while refinery throughput declined 6% y/y to 383,000 bbl/day. Aside from Alberta's curtailment program, CEO Rich Kruger blamed the lacklustre performance on "extreme cold weather" this past winter. Imperial cut its 2019 capital spending forecast from as much as $2.4 billion to $1.9 billion, and raised its dividend 22%.

  • Profits at Exxon Mobil were cut in half in the first quarter, blamed on weak refining margins, higher maintenance costs, lower natural gas prices and production cuts out of its oil sands operations. The company's refining division posted a US$256 million loss, a first since 2009. Total revenues declined 6.7% y/y to US$63.6 billion. Global output rose 2% y/y to 4.0 million bbl/day.

  • Chevron posted first quarter revenues of US$35.2 billion, down 7% from the same time last year. Net profits fell 27% y/y to US$2.65 billion. The decline was blamed on lower downstream revenues and higher interest charges. Total output averaged 3.04 million boe/day, up 6.5% y/y. CEO Michael Wirth says his company has begun work to integrate Anadarko Petroleum, but didn't say if he plans to boost his bid for the company.

  • Net profits at Total fell 4% to US$2.8 billion in the first quarter, blamed on volatile oil prices and lower natural gas prices. Upstream production rose 9% y/y to 2.95 million boe/day, while revenues rose 3% y/y to US$51.2 billion. Total also raised its dividend 3.1% to €0.66 a share.

  • Cabot Oil & Gas reported a net profit of US$263 million for the first quarter, up from US$117 million for the same time last year. Operating cash flow hit a record US$585 million, as output rose 21% to 2.28 Bcfe/day. The company also boosted its dividend 29%, its fourth increase in the last two years.

  • Camp-operator Civeo posted a net loss of US$17.5 million, versus a US$53 million loss reported the same quarter last year. Revenues rose 7% y/y to US$108.6 million. The company says it is seeing higher demand for accommodations in Australia and the US, offsetting continued weakness in the oil sands.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$72.15▼3.050.47
 
86.29
WTI$63.30▼2.942.53
 
76.41
CDN LT$58.25▼3.220.83
 
69.32
C5+$58.95▼2.137.04
 
71.40
WCS$50.85▼3.612.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ APR 26   █ APR 19   █ APR 12   █ APR 5   (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
  • CES Energy (CEU +0.7%)
  • Shawcor (SCL +0.5%)
  • TransCanada (TRP +0.2%)
  • Keyera (KEY +0.2%)
  • Altagas (ALA +0.1%)
  • 12-MO HIGHS
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Mullen Group (MTL -13.5%)
  • Peyto Exploration (PEY -6.3%)
  • Birchcliff Energy (BIR -4.3%)
  • Tourmaline (TOU -4.3%)
  • PrairieSky (PSK -4%)
  • 12-MO LOWS
  • Mullen Group (MTL -13.5%)
  • Peyto Exploration (PEY -6.3%)
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Suncor EnergySU44.36▼-0.835.53
     
    55.47D   W
    Imperial OilIMO39.19▼-1.933.52
     
    44.91D   W
    Husky EnergyHSE14.40▼-0.113.21
     
    22.99D   W
    MIDSTREAM
    EnbridgeENB50.28▼-1.537.68
     
    51.20D   W
    TransCanadaTRP64.33▲0.247.90
     
    64.46D   W
    Pembina PipelinePPL49.16▼-0.839.15
     
    50.65D   W
    Inter PipelineIPL22.16▼-0.418.60
     
    25.66D   W
    Keyera KEY31.36▲0.224.05
     
    38.91D   W
    Gibson EnergyGEI22.27▼-0.516.29
     
    23.75D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ40.51▼-0.530.11
     
    49.08D   W
    Cenovus EnergyCVE13.47▼-1.98.74
     
    14.84D   W
    EncanaECA9.64▼-2.96.90
     
    18.54D   W
    TourmalineTOU20.56▼-4.315.84
     
    26.19D   W
    Vermilion EnergyVET35.15▼-1.726.67
     
    49.67D   W
    SERVICES
    Pason SystemsPSI19.76▼-1.817.18
     
    24.57D   W
    EnerflexEFX18.63▼-0.413.55
     
    20.38D   W
    Mullen Group MTL10.55▼-13.510.54
     
    16.93D   W
    ShawcorSCL20.10▲0.515.11
     
    28.89D   W
    Secure EnergySES8.17▼-2.36.25
     
    9.44D   W
    REFINING & MARKETING
    Parkland FuelPKI41.07▼-1.229.43
     
    47.45D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • Ntl-Oilwell Varco (NOV +3.6%)
  • TechnipFMC (FTI +3%)
  • Cabot O&G (COG +2.5%)
  • Anadarko Petro (APC +1.5%)
  • Kinder Morgan (KMI +1.3%)
  • 12-MO HIGHS
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Helmerich & Payne (HP -4.5%)
  • EOG Resources (EOG -4.1%)
  • Marathon Oil (MRO -3.1%)
  • Apache (APA -2.9%)
  • Devon Energy (DVN -2.5%)
  • 12-MO LOWS
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H CHART
    INTEGRATED
    Exxon MobilXOM80.49▼-2.164.65
     
    87.36D   W
    ChevronCVX117.10▼-0.7100.22
     
    131.08D   W
    MIDSTREAM
    Kinder MorganKMI20.23▲1.314.62
     
    20.44D   W
    Williams CoWMB28.49▲0.120.36
     
    32.22D   W
    ONEOKOKE68.73▼-1.550.26
     
    71.99D   W
    LARGE CAP E&P
    ConocoPhillipsCOP62.78▼-1.856.75
     
    80.24D   W
    EOG ResourcesEOG97.88▼-4.182.04
     
    133.53D   W
    Occidental PetroOXY61.31▼-0.856.83
     
    87.67D   W
    Anadarko PetroAPC72.80▲1.540.40
     
    76.70D   W
    Pioneer Natural ResPXD164.94▼-1.8119.08
     
    213.40D   W
    SERVICES
    SchlumbergerSLB43.300.034.99
     
    75.43D   W
    HalliburtonHAL28.85▼-1.224.70
     
    54.91D   W
    Baker HughesBHGE25.58▲0.020.09
     
    37.76D   W
    Ntl-Oilwell VarcoNOV27.40▲3.624.27
     
    49.08D   W
    TechnipFMCFTI24.99▲3.018.20
     
    34.39D   W
    REFINERS
    Marathon PetroMPC60.39▼-0.454.29
     
    88.45D   W
    Phillips 66PSX94.92▼-0.378.44
     
    123.97D   W
    Valero EnergyVLO90.08▼-0.868.81
     
    126.98D   W
    HollyFrontierHFC48.56▼-1.946.75
     
    83.28D   W
    NYSE ADRs
    COMPANY TICKER CLOSE %CHG L 52WK H CHART
    Royal Dutch ShellRDS.A63.06▼-0.955.04
     
    73.86D   W
    TotalTOT55.17▼-1.349.70
     
    65.69D   W
    BPBP43.31▼-1.536.28
     
    47.83D   W
    EniE34.19▼-0.829.75
     
    40.15D   W
    EquinorEQNR22.39▼-1.219.95
     
    28.93D   W
    ANALYST RATINGS

    UPGRADES

    • None

    DOWNGRADES

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

    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
    A quiet start to the trading week as investors digest M&A news and more Q1 earnings

    A quiet start to the trading week as investors digest M&A news and more Q1 earnings

    Oil prices dip despite outage of major Russian export pipeline

    Oil prices dip despite outage of major Russian export pipeline

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