Markets breathe a sigh of relief, sending oil prices and energy stocks higher

Markets breathe a sigh of relief, sending oil prices and energy stocks higher

Today's energy market action:

  • A softer stance from President Trump comforted markets on Tuesday, sending stocks and commodities higher.

  • Brent rose 1.4%, while WTI and WCS gained 1.2%. Canadian Light added 0.9%, as the discount to WTI widened slightly.

  • Gasoline, heating oil and Henry Hub also moved up about 1% for the day.

  • The American Petroleum Institute is forecasting an 8.6 million barrel build in US crude stockpiles for last week. Official numbers from the Energy Information Administration are due to be released Wednesday morning.

Today's treasury, currency and equity market action:

  • US treasuries and the Japanese yen  gave back some of yesterday's gains, as traders turned to riskier assets. The pound and Euro also dipped slightly, helping the greenback rise 0.2%.

  • US equity markets all gained about 1%, including the NYSE and S&P 500. Except for rate-sensitive utility stocks, all other sectors ended the day in the green. Energy rose 1.1%, with oilfield services stocks posting the biggest gains.

  • In Toronto, the TSX rose 0.6%, including a 2.1% increase among Canadian energy names.

Today's supply/demand update from OPEC:

  • In its May Monthly Oil Market Report, OPEC kept its crude supply, demand and economic growth forecasts roughly unchanged from the previous month. The cartel says its members produced about 30.0 million bbl/day in April, also unchanged from the previous month.

  • OECD commercial oil stockpiles remain stubbornly high, rising by 3.3 million barrels in March, to 2.88 billion barrels. Despite OPEC's aggressive production cuts, crude inventories remain 20.3 million barrels above the 5-year average.

  • Non-OPEC free cash flow (FCF) was estimated to have hit a record high of US$310 billion in 2018, double the previous year. Despite soft oil prices in the latter half of the year, OPEC says companies benefited from lower capital spending and a decline in operating costs. A slight drop is expected for this year, but FCF is expected to reach a record high of US$324 billion in 2020. 

  • About US$390 billion in greenfield and brownfield projects are expected to be sanctioned this year (ex-OPEC), rising to US$468 billion in 2020.

Today's other notable energy news:

  • Keyera Corp and SemCAMS Midstream have partnered up to build the Key Access Pipeline System (KAPS), an NGL and condensate pipeline designed to transport production from the Montney and Duvernay region in northwestern Alberta to the Fort Saskatchewan area, just north of Edmonton. KAPS is expected to be operational sometime in the first half of 2022. The new JV between Keyera and SemCAMS replaces the arrangement between Keyera and Wolf Midstream. SemCAMS Midstream is owned by SemGroup Corp and private-equity firm KKR

  • Keyera also announced a sulphur handling project with a "major" oil sands producer at its South Cheecham Terminal, owned jointly with Enbridge. The project is back by a 100% take-or-pay contract, beginning in 2022.

  • After having two of its crude carriers attacked yesterday, two Saudi oil pumping stations were hit by drones packed with explosives on Tuesday, sparking a fire. The country accuses Iran of being behind both attacks, although no groups have claimed responsibility so far. Saudi Aramco temporarily shut its East-West pipeline, but says output has not been affected.

  • The government of Mozambique has approved ExxonMobil's planned Rovuma LNG project, located on the Afungi peninsula. The facility was approved for up to 15 million t/yr of LNG, split into two trains. The gas will be sourced from a deepwater offshore field, estimated to contain 85 trillion cubic feet of natural gas. Exxon will lead construction and operation of the LNG facility, while partner Eni will lead construction and operation of the gas field. Romuva LNG is located near Anadarko's 13 million t/yr Mozambique LNG facility, which is expected to be sanction before the summer.

  • Today's notable first quarter earnings:

  • Keyera Corp reported a $33.8 million profit for the first quarter, down 61% from the same time last year, due in part to an outage of its Alberta EnviroFuels Facility. Funds from operations rose 9% to $224 million. Natural gas processing volumes reached a record 1.6 MMcf/day.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$71.24▲1.450.47
 
86.29
WTI$61.78▲1.242.53
 
76.41
CDN LT$56.18▲0.920.83
 
69.32
C5+$57.54▲1.337.04
 
71.40
WCS$48.95▲1.212.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAY 14   █ MAY 7   █ APR 30   █ APR 23   (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
Birchcliff Energy (BIR +6%)
Ensign Energy Svcs (ESI +4.9%)
Encana (ECA +4.4%)
Kelt Exploration (KEL +3.6%)
Shawcor (SCL +3.4%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
CES Energy (CEU -1.6%)
Enbridge (ENB -1%)
Inter Pipeline (IPL -0.5%)
Baytex Energy (BTE 0%)
12-MO
LOWS
Gran Tierra (GTE +1.4%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU42.98▲1.535.53
 
55.47D   W
Imperial OilIMO37.77▲1.133.52
 
44.91D   W
Husky EnergyHSE13.30▲1.413.10
 
22.99D   W
MIDSTREAM
EnbridgeENB49.09▼-1.039.40
 
51.20D   W
TransCanadaTRP63.91▲1.447.90
 
64.46D   W
Pembina PipelinePPL47.73▲0.439.15
 
50.65D   W
Inter PipelineIPL20.68▼-0.518.60
 
25.66D   W
Keyera KEY31.61▲1.124.05
 
38.91D   W
Gibson EnergyGEI22.39▲3.316.64
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ37.52▲2.430.11
 
49.08D   W
Cenovus EnergyCVE12.06▲2.48.74
 
14.84D   W
EncanaECA9.00▲4.46.90
 
18.54D   W
TourmalineTOU19.68▲1.915.84
 
26.19D   W
Vermilion EnergyVET31.42▲0.626.67
 
49.67D   W
SERVICES
Pason SystemsPSI19.70▲1.217.18
 
24.57D   W
EnerflexEFX17.21▲1.113.55
 
20.38D   W
Mullen Group MTL10.04▲0.59.39
 
16.93D   W
ShawcorSCL19.21▲3.415.11
 
28.89D   W
Secure EnergySES7.55▲1.66.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI39.89▲2.130.01
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Helmerich & Payne (HP +3.4%)
Marathon Oil (MRO +3.2%)
Halliburton (HAL +3.2%)
Valero Energy (VLO +3%)
Apache (APA +2.9%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
None
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM75.81▲0.164.65
 
87.36D   W
ChevronCVX121.64▲1.0100.22
 
131.08D   W
MIDSTREAM
Kinder MorganKMI19.93▲1.314.62
 
20.44D   W
Williams CoWMB27.48▲0.820.36
 
32.22D   W
ONEOKOKE66.97▲0.750.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP62.32▲1.956.75
 
80.24D   W
EOG ResourcesEOG94.34▲0.982.04
 
133.53D   W
Occidental PetroOXY54.55▲0.753.51
 
87.67D   W
Anadarko PetroAPC72.96▲0.240.40
 
76.70D   W
Pioneer Natural ResPXD150.35▲2.1119.08
 
213.40D   W
SERVICES
SchlumbergerSLB39.00▲2.234.99
 
75.43D   W
HalliburtonHAL25.43▲3.224.33
 
54.91D   W
Baker HughesBHGE22.28▲2.520.09
 
37.41D   W
Ntl-Oilwell VarcoNOV24.38▲2.723.42
 
49.08D   W
TechnipFMCFTI22.61▲2.618.20
 
34.39D   W
REFINERS
Marathon PetroMPC51.31▲1.250.60
 
88.45D   W
Phillips 66PSX86.92▲1.378.44
 
123.97D   W
Valero EnergyVLO82.96▲3.068.81
 
126.98D   W
HollyFrontierHFC43.63▲2.342.19
 
83.28D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A64.11▲1.255.04
 
73.86D   W
TotalTOT53.00▲0.949.70
 
65.69D   W
BPBP41.55▲0.836.28
 
47.83D   W
EniE32.50▲0.829.75
 
40.15D   W
EquinorEQNR21.03▲0.519.95
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • China Petroleum & Chemical (SNP): Upgraded from Neutral to Buy at Citigroup.

  • PetroChina (PTR): Upgraded from Neutral to Buy at Goldman Sachs.

  • Valero Energy (VLO): Upgraded from Neutral to Overweight at JPMorgan Chase.

DOWNGRADES

  • Weatherford International (WFT): Downgraded from Outperform to Neutral at Credit Suisse.

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 continue to rally, as markets recover losses from Monday's meltdown

Oil prices continue to rally, as markets recover losses from Monday's meltdown

China fires back, sending stocks and bond yields sharply lower

China fires back, sending stocks and bond yields sharply lower

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