Oil markets remain quiet despite rumblings of higher output from OPEC+
Today's energy market action:
Oil markets were mixed on Monday, with Brent falling 0.3%, while WTI posted a 0.5% gain. Canadian light and heavy benchmarks rose 0.6% and 0.7%, respectively.
Gasoline prices declined 1.7%, while heating oil dipped 1%. Henry Hub rose 1.6%, topping US$2.70/MMBtu for the first time since mid-April.
US equity markets mostly declined on Monday, due in part to news of US restrictions on a major Chinese telecom company. The NASDAQ was the worst hit market, falling 1.7%. The NYSE declined 0.3%, while the S&P 500 fell 0.7%. The SPX energy sector was little changed for the day. Declines were broadly based across all subsectors.
The TSX was closed for Victoria Day.
Today's notable energy news:
AltaGas is reportedly ready to open its $500 million Ridley Terminal sometime next week. Ridley is a propane export terminal, located in Prince Rupert. BC. The propane is destined primarily for customers in Japan, for use as heating and cooking fuel. Ridley Island has a 25-year licence in place to export 1.2 million t/y.
This weekend's OPEC+ meeting in Saudi Arabia resulted in no change in policy, but a warning output may need to rise in the second half of the year. Saudi Arabia promises to remain "responsive" but still wants to see more drawdowns in global inventories. Curtailments out of OPEC+ currently add up to 2 million bbl/day, much higher than its target of 1.2 million bbl/day due to the reinstatement of US sanctions on Iran and Venezuela. OPEC officially meets in Vienna at the end of June.
ExxonMobil evacuated foreign staff out of its West Qurna 1 oil field, located just west of Basra. The move is a precautionary measure in response to threats from neighbouring Iran. Iraq’s South Oil Company owns the field, which produces 440,000 bbl/day. Exxon has a long-term agreement in place to help boost output from the region, and says its foreign engineers will still provide assistance from their offices in Dubai. The move was slammed by the Iraqi government, who called the evacuations "unacceptable and unjustified." Output from the field has not been affected.
The Trump Administration has once again denied a request from Plains All-American (PAA) to be exempted from tariffs on steel imports from Greece. PAA says the tariffs will add US$40 million in capital costs to its 562-mile Cactus 2 pipeline, which stretches from the Permian Basin to Corpus Christi, Texas. This is the company's second waiver request for the same project.
Oil traders Vitol and Unipec have rerouted over 4 million barrels of tainted Russian crude to Asia, after being rejected by customers in Europe. China's independent refiners have shown interest in the unwanted feedstock, which contains as much as 200 ppm of organic chlorides. Organic chlorides convert to hydrogen chloride during the refining process, accelerating corrosion rates. However, at the right price, the "dirty" crude can be blended with "clean" feedstock until chloride concentrations fall below critical levels, typically about 10 ppm.
China National Petroleum Corp (CNPC) is planning to open dozens of retail fuel stations in the fast-growing region of Myanmar. Fuel subsidies were removed in 2007, boosting the number of gas stations from just 200 to over 2,000 in the past decade.
ExxonMobil is selling a package of assets in the US Gulf of Mexico, reportedly worth about US$1.5 billion. The properties have drawn interest from Spain's Repsol and UK-based Ineos. Late last year, Exxon said it was "testing market interest" for a number of older, smaller fields in the region.
Carlyle Group is reportedly in discussions with three pipeline operators to sell a 25% stake in its Corpus Christi crude oil export terminal. The deal is estimated to be worth US$625 million.
|Exxon Mobil||XOM||75.90||▼0.0||64.65||87.36||D W|
|Kinder Morgan||KMI||20.29||▲0.5||14.62||20.55||D W|
|Williams Co||WMB||27.46||▼-0.2||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||93.68||▲0.6||82.04||133.53||D W|
|Occidental Petro||OXY||53.46||▲1.4||52.62||87.67||D W|
|Anadarko Petro||APC||72.75||▲0.2||40.40||76.70||D W|
|Pioneer Natural Res||PXD||154.21||▼-0.1||119.08||213.40||D W|
|Baker Hughes||BHGE||23.29||▲2.5||20.09||37.07||D W|
|Ntl-Oilwell Varco||NOV||24.13||▲0.7||23.42||49.08||D W|
|Marathon Petro||MPC||52.12||▲0.4||50.19||88.45||D W|
|Phillips 66||PSX||84.52||▼-0.3||78.44||123.97||D W|
|Valero Energy||VLO||82.08||▼-1.9||68.81||126.98||D W|
Cimarex Energy (XEC): Upgraded from Hold to Buy at SunTrust Banks.
EOG Resources (EOG): Upgraded from Market Perform to Outperform at Wells Fargo.
EQT (EQT): Upgraded from Market Perform to Outperform at Wells Fargo.
Superior Energy Services (SPN): Downgraded from Equal Weight to Underweight at Barclays.
UPDATED: DAILY (END-OF-DAY)
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