Oil prices dip as US crude stockpiles move sharply higher
Today's energy market action:
A bigger than expected build in US crude stockpiles sent oil prices lower on Wednesday. Brent declined 0.9%, while WTI fell 0.5%.
Discounts on Canadian crude narrowed slightly, sending both Canadian Light and WCS higher on Wednesday.
Heating oil rose almost 1% while gasoline prices were little changed. Henry Hub natural gas gained almost 2%.
Today's currency and equity market action:
As expected, the US Federal Reserve kept interest rates unchanged today, citing "global economic and financial developments and muted inflation pressures." Despite the news, short-duration US bonds yields moved higher on Wednesday, helping the US dollar gain 0.2%.
North American markets ended the day lower, with almost all sectors posting losses for the day. The S&P 500 declined 0.8%, while the TSX lost 0.5% for the day.
Energy was the worst performing sector on both sides of the border, falling 2.1% on the TSX and 2.8% on the SPX. Losses were seen across all energy subsectors.
Today's notable energy news:
According to the Energy Information Administration, US crude stockpiles rose almost 10 million barrels last week, mostly in the Gulf Coast. Gasoline stockpiles rose almost 1 million barrels, the first increase since early February. US production was estimated to have risen to a new record high of 12.3 million bbl/day.
Canadian Natural Resources (CNRL) says synthetic crude production for the months of April and May will be negatively impacted by 21,000 bbl/day (net to CNRL), due to a fire that occurred at the Scotford Upgrader in mid-April. The company's full year guidance was left unchanged. CNRL reports Q1 earnings on May 9, 2019.
After a slight delay, Chevron has closed on the acquisition of the Pasadena Refinery in Texas, purchased from Petrobras earlier this year for US$350 million. This is Chevron's second refinery in the Gulf Coast, boosting its light oil processing capacity by 110,000 bbl/day.
Today's notable first quarter earnings results:
ARC Resources posted a $55 million loss in the first quarter, down from a $55 million profit for the same time last year. Funds from operations fell 8% to $186 million, while quarterly production hit a record 139,054 boe/day. The company says output and operating costs will likely be negatively impacted in the second quarter due to pipeline outages, maintenance turnarounds, and spring break-up.
First quarter losses at Whitecap Resources widened to $52.6 million. Production averaged 70,666 boe/day in Q1, down 3% y/y, but slightly above guidance. Despite the loss, the company raised its monthly dividend 5.6% to $0.0285 per share.
Oilfield analytics firm Pason Systems reported a $19 million profit for the first quarter, up 54% from the same time last year. Revenues rose 11% y/y to $82 million. Activity in the US rose 7% while activity in Canada declined 32%.
Marathon Oil posted an adjusted net profit of US$256 million, up 66% from the same quarter last year. Oil production averaged 203,000 bbl/day, up 6% y/y excluding divestitures. Revenues declined 31% y/y to US$1.2 billion. The company plans to divest its UK North Sea assets by the second half of this year, narrowing the company's focus on its core US shale properties.
Apache Corp posted a quarterly loss of US$47 million. Revenues declined 6% y/y to US$1.6 billion, while production rose 14% y/y to 503,000 boe/day.
Whiting Petroleum swung to a US$14 million loss in the first quarter, including a US$64 million hedging charge. Output averaged 128,670 boe/day, up 1% y/y.
Magellan Midstream Partners posted a net profit of US$208 million in the first quarter, down 1.5% y/y. Distributable cash flow hit a record US$318 million during the quarter.
Williams Co posted a net profit of US$194 million, up 28% from the same quarter last year. Cash flow from operations rose 12% y/y to US$775 million.
|Suncor Energy||SU||43.75||▼-1.0||35.53||55.47||D W|
|Imperial Oil||IMO||38.73||▼-0.5||33.52||44.91||D W|
|Husky Energy||HSE||14.14||▼-2.8||13.21||22.99||D W|
|Pembina Pipeline||PPL||47.69||▼-0.4||39.15||50.65||D W|
|Inter Pipeline||IPL||21.58||▼-1.1||18.60||25.66||D W|
|Gibson Energy||GEI||22.06||▼-0.1||16.40||23.75||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||38.92||▼-3.2||30.11||49.08||D W|
|Cenovus Energy||CVE||12.64||▼-4.8||8.74||14.84||D W|
|Vermilion Energy||VET||32.98||▼-3.6||26.67||49.67||D W|
|Pason Systems||PSI||19.46||▼-2.5||17.18||24.57||D W|
|Mullen Group||MTL||9.76||▼-2.6||9.71||16.93||D W|
|Secure Energy||SES||7.69||▼-4.1||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||41.41||▲0.3||29.55||47.45||D W|
|Exxon Mobil||XOM||78.67||▼-2.0||64.65||87.36||D W|
|Kinder Morgan||KMI||19.59||▼-1.4||14.62||20.44||D W|
|Williams Co||WMB||27.98||▼-1.2||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||91.89||▼-4.3||82.04||133.53||D W|
|Occidental Petro||OXY||57.48||▼-2.3||56.83||87.67||D W|
|Anadarko Petro||APC||72.37||▼-0.7||40.40||76.70||D W|
|Pioneer Natural Res||PXD||157.98||▼-5.1||119.08||213.40||D W|
|Baker Hughes||BHGE||23.55||▼-2.0||20.09||37.76||D W|
|Ntl-Oilwell Varco||NOV||24.92||▼-4.6||24.27||49.08||D W|
|Marathon Petro||MPC||59.95||▼-1.5||54.29||88.45||D W|
|Phillips 66||PSX||91.84||▼-2.6||78.44||123.97||D W|
|Valero Energy||VLO||89.77||▼-1.0||68.81||126.98||D W|
UPDATED: DAILY (END-OF-DAY)
• OIL PRICES REFLECT NEAR MONTH CONTRACT FROM THE NYMEX/CME GROUP
• EQUITY PRICES PROVIDED BY NYSE & TMX GROUP
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• 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)
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