Energy markets take a sharp tumble as US/China trade relations deteriorate

Energy markets take a sharp tumble as US/China trade relations deteriorate

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Today’s energy market action:

  • Equity markets and energy commodities slid lower once again on Thursday, after Chinese officials signalled frustrations over trade talks with the US.

  • Oil prices suffered their biggest one-day decline so far this year, with both Brent and WTI each shedding over US$3 a barrel. Brent ended the day below US$68, while WTI closed at about US$58.

  • Canadian Light also declined US$3.50, in line with WTI. The Canadian heavy benchmark shed US$4 a barrel, ending the day at about US$41.50, the lowest since late February. The Canadian heavy discount to WTI widened to over US$16 a barrel on Thursday.

  • Gasoline and heating oil also lost about 4%.

Today’s equity and currency market action:

  • Statistics Canada reported a fourth consecutive monthly increase in wholesale sales, rising 1.4% m/m to $64.1 billion in March. The number of Canadians collecting Employment Insurance also dipped 1% m/m in March. Despite the positive news, the loonie declined 0.3%.

  • Buyers seeking safe-havens fled to the Japanese yen and Swiss franc on Thursday, sending each currency up about 0.6%. The British pound was unchanged despite rumours PM Theresa May may resign her position later this week. The US dollar spiked to a 2-year high earlier in the day, but closed 0.2% lower.

  • Global bond yields slid lower, particularly in the US, where the short-term yield curve slid into negative territory. German 10-year notes ended the day at -0.12%.

  • A sea of red in global equity markets on Thursday, including the US and Canada. The NYSE and S&P 500 fell 1.2%, while the TSX declined 1.0%. Energy was the worst performing sector on both sides of the border, falling 3% on the SPX and 4% on the TSX.

Today's notable energy news:

  • Royal Dutch Shell announced the start of production at its Appomattox FSPO in the US Gulf of Mexico. The facility produces 175,000 boe/day from the Norphlet formation, and is located about 130 km off the coast of Louisiana. Shell says the project was delivered ahead of schedule and "far under" budget. Appomattox is owned jointly with CNOOC.

  • According to Reuters, BP is nearing an agreement to sell its stake in a major Egyptian oil and gas field to Dubai-based Dragon Oil. The deal is estimated to be worth US$600 million. Dragon Oil a subsidiary of Emirates National Oil Company.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$67.76▼4.550.47
 
86.29
WTI$57.91▼5.742.53
 
76.41
CDN LT$49.81▼6.620.83
 
69.32
C5+$51.96▼5.637.04
 
71.40
WCS$41.56▼9.012.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAY 23   █ MAY 16   █ MAY 9   █ MAY 2   (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
None
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
MEG Energy (MEG -9.9%)
Kelt Exploration (KEL -8.8%)
Crescent Point (CPG -8.1%)
Nuvista Energy (NVA -7.7%)
Precision Drilling (PD -7.6%)
12-MO
LOWS
Husky Energy (HSE -2.8%)
CES Energy (CEU -4.3%)
Gran Tierra (GTE -4.3%)
MEG Energy (MEG -9.9%)
Nuvista Energy (NVA -7.7%)
Peyto Exploration (PEY -5%)
Seven Generations (VII -4.9%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU41.37▼-3.535.53
 
55.47D   W
Imperial OilIMO36.49▼-2.933.52
 
44.91D   W
Husky EnergyHSE12.54▼-2.812.31
 
22.99D   W
MIDSTREAM
EnbridgeENB49.81▼-0.439.40
 
51.20D   W
TransCanadaTRP65.13▼-0.847.90
 
66.00D   W
Pembina PipelinePPL47.97▼-1.439.15
 
50.65D   W
Inter PipelineIPL20.44▼-1.518.60
 
25.66D   W
Keyera KEY33.13▼-1.524.05
 
38.91D   W
Gibson EnergyGEI22.37▼-3.816.76
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ34.82▼-3.330.11
 
49.08D   W
Cenovus EnergyCVE11.10▼-3.38.74
 
14.84D   W
EncanaECA8.08▼-7.26.90
 
18.54D   W
TourmalineTOU17.73▼-6.015.84
 
26.11D   W
Vermilion EnergyVET28.88▼-3.626.67
 
49.67D   W
SERVICES
Pason SystemsPSI19.13▼-2.717.18
 
24.57D   W
EnerflexEFX17.90▼-1.313.55
 
20.38D   W
Mullen Group MTL10.11▼-0.59.39
 
16.93D   W
ShawcorSCL17.76▼-3.215.11
 
28.89D   W
Secure EnergySES7.16▼-1.76.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI39.76▼-2.930.01
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Occidental Petro (OXY +0.3%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Hess Corp (HES -8%)
Devon Energy (DVN -7.3%)
Noble Energy (NBL -6.9%)
Cimarex Energy (XEC -6.6%)
Concho Res (CXO -6.4%)
12-MO
LOWS
Occidental Petro (OXY +0.3%)
Halliburton (HAL -5%)
Ntl-Oilwell Varco (NOV -4.4%)
Marathon Petro (MPC -3.4%)
HollyFrontier (HFC -4.1%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM73.79▼-2.364.65
 
87.36D   W
ChevronCVX117.87▼-2.2100.22
 
128.79D   W
MIDSTREAM
Kinder MorganKMI19.96▼-1.914.62
 
20.57D   W
Williams CoWMB27.01▼-2.220.36
 
32.22D   W
ONEOKOKE65.33▼-2.450.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP59.50▼-5.656.75
 
80.24D   W
EOG ResourcesEOG88.85▼-4.482.04
 
133.53D   W
Occidental PetroOXY52.91▲0.351.29
 
87.67D   W
Anadarko PetroAPC72.29▼0.040.40
 
76.70D   W
Pioneer Natural ResPXD145.58▼-4.9119.08
 
201.63D   W
SERVICES
SchlumbergerSLB37.49▼-2.234.99
 
73.47D   W
HalliburtonHAL23.51▼-5.023.03
 
52.95D   W
Baker HughesBHGE23.06▼-1.320.09
 
36.53D   W
Ntl-Oilwell VarcoNOV22.11▼-4.421.67
 
49.08D   W
TechnipFMCFTI22.14▼-3.718.20
 
33.60D   W
REFINERS
Marathon PetroMPC50.14▼-3.449.71
 
88.45D   W
Phillips 66PSX82.27▼-3.978.44
 
123.97D   W
Valero EnergyVLO75.41▼-6.268.81
 
126.98D   W
HollyFrontierHFC40.96▼-4.140.74
 
83.28D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A62.46▼-2.055.04
 
71.85D   W
TotalTOT52.99▼-2.149.70
 
65.69D   W
BPBP41.34▼-2.436.28
 
47.57D   W
EniE31.04▼-2.629.75
 
39.16D   W
EquinorEQNR19.93▼-3.919.76
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Bonanza Creek Energy (BCEI): Upgraded from Equal Weight to Overweight at Capital One.

  • Berry Petroleum (BRY): Upgraded from Equal Weight to Overweight at Capital One.

  • Callon Petroleum (CPE): Upgraded from Equal Weight to Overweight at Capital One.

  • Cimarex Energy (XEC): Upgraded from Equal Weight to Overweight at Capital One.

  • Comstock Resources (CRK): Upgraded from Underweight to Equal Weight at Capital One.

  • Laredo Petroleum (LPI): Upgraded from Underweight to Equal Weight at Capital One.

  • Marathon Oil (MRO): Upgraded from Equal Weight to Overweight at Capital One.

  • Noble Energy (NBL): Upgraded from Equal Weight to Overweight at Capital One.

  • Penn Virginia (PVAC): Upgraded from Equal Weight to Overweight at Capital One.

  • SM Energy (SM): Upgraded from Equal Weight to Overweight at Capital One.

  • W&T Offshore (WTI): Upgraded from Underweight to Equal Weight at Capital One.

DOWNGRADES

  • Sasol (SSL): Downgraded from Overweight to Neutral at JPMorgan Chase and from Buy to Neutral at Citigroup.

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
Canadian benchmarks recover slightly on Friday, but post a sixth consecutive week of declines

Canadian benchmarks recover slightly on Friday, but post a sixth consecutive week of declines

Slowing global growth and rising US crude inventories send energy markets lower

Slowing global growth and rising US crude inventories send energy markets lower