Oil prices dip as US crude stockpiles move sharply higher

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.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$72.18▼0.950.47
 
86.29
WTI$63.60▼0.542.53
 
76.41
CDN LT$59.17▲0.520.83
 
69.32
C5+$59.15▼0.737.04
 
71.40
WCS$51.52▲0.112.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAY 1   █ APR 24   █ APR 17   █ APR 10   (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
Parkland Fuel (PKI +0.3%)
Enbridge (ENB +0.1%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Baytex Energy (BTE -6.3%)
MEG Energy (MEG -6.2%)
Kelt Exploration (KEL -6.1%)
Nuvista Energy (NVA -6%)
Precision Drilling (PD -5.2%)
12-MO
LOWS
Mullen Group (MTL -2.6%)
CES Energy (CEU -4.6%)
Peyto Exploration (PEY -1.2%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU43.75▼-1.035.53
 
55.47D   W
Imperial OilIMO38.73▼-0.533.52
 
44.91D   W
Husky EnergyHSE14.14▼-2.813.21
 
22.99D   W
MIDSTREAM
EnbridgeENB49.54▲0.138.89
 
51.20D   W
TransCanadaTRP63.80▼-0.247.90
 
64.46D   W
Pembina PipelinePPL47.69▼-0.439.15
 
50.65D   W
Inter PipelineIPL21.58▼-1.118.60
 
25.66D   W
Keyera KEY30.69▼-0.924.05
 
38.91D   W
Gibson EnergyGEI22.06▼-0.116.40
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ38.92▼-3.230.11
 
49.08D   W
Cenovus EnergyCVE12.64▼-4.88.74
 
14.84D   W
EncanaECA8.99▼-3.16.90
 
18.54D   W
TourmalineTOU19.56▼-2.415.84
 
26.19D   W
Vermilion EnergyVET32.98▼-3.626.67
 
49.67D   W
SERVICES
Pason SystemsPSI19.46▼-2.517.18
 
24.57D   W
EnerflexEFX18.01▼-2.813.55
 
20.38D   W
Mullen Group MTL9.76▼-2.69.71
 
16.93D   W
ShawcorSCL19.68▼-1.015.11
 
28.89D   W
Secure EnergySES7.69▼-4.16.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.41▲0.329.55
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
HollyFrontier (HFC +0.1%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Concho Res (CXO -5.7%)
Pioneer Natural Res (PXD -5.1%)
Diamondback (FANG -4.7%)
Ntl-Oilwell Varco (NOV -4.6%)
EOG Resources (EOG -4.3%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM78.67▼-2.064.65
 
87.36D   W
ChevronCVX117.81▼-1.9100.22
 
131.08D   W
MIDSTREAM
Kinder MorganKMI19.59▼-1.414.62
 
20.44D   W
Williams CoWMB27.98▼-1.220.36
 
32.22D   W
ONEOKOKE67.58▼-0.550.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP62.67▼-0.756.75
 
80.24D   W
EOG ResourcesEOG91.89▼-4.382.04
 
133.53D   W
Occidental PetroOXY57.48▼-2.356.83
 
87.67D   W
Anadarko PetroAPC72.37▼-0.740.40
 
76.70D   W
Pioneer Natural ResPXD157.98▼-5.1119.08
 
213.40D   W
SERVICES
SchlumbergerSLB41.37▼-3.134.99
 
75.43D   W
HalliburtonHAL27.59▼-2.624.70
 
54.91D   W
Baker HughesBHGE23.55▼-2.020.09
 
37.76D   W
Ntl-Oilwell VarcoNOV24.92▼-4.624.27
 
49.08D   W
TechnipFMCFTI23.77▼-3.318.20
 
34.39D   W
REFINERS
Marathon PetroMPC59.95▼-1.554.29
 
88.45D   W
Phillips 66PSX91.84▼-2.678.44
 
123.97D   W
Valero EnergyVLO89.77▼-1.068.81
 
126.98D   W
HollyFrontierHFC47.76▲0.146.75
 
83.28D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A62.72▼-1.355.04
 
73.86D   W
TotalTOT54.99▼-1.249.70
 
65.69D   W
BPBP43.08▼-1.536.28
 
47.83D   W
EniE33.53▼-1.229.75
 
40.15D   W
EquinorEQNR21.76▼-1.919.95
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • ConocoPhillips (COP): Upgraded from Neutral to Outperform at Credit Suisse.

DOWNGRADES

  • Encana (ECA.TO): Downgraded from Outperform to market Perform at Bernstein.

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 post another day of losses, wiping out all of April's gains

Energy stocks post another day of losses, wiping out all of April's gains

Canadian oil prices move higher on Tuesday, posting a fifth consecutive month of gains

Canadian oil prices move higher on Tuesday, posting a fifth consecutive month of gains

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