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

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Today's energy market action:

  • After yesterday's sharp sell-off, oil prices recovered slightly on Friday, helped by a weaker US dollar and third week of declines in US oil rig counts.

  • Crude oil benchmarks all moved higher by about 1.5% on Friday, but posted one of the steepest weekly drop so far this year. Versus last Friday's close, Brent decline 5%, WTI fell about 7%, Canadian Light declined 9% while WCS tumbled over 10%. This is the sixth consecutive week of losses for Canadian benchmarks.

  • Gasoline and heating oil also recouped some of Thursday's losses on Friday, but ended the week down over 5% from last Friday's close.

  • According to Baker Hughes, the US lost five oil rigs this week, leaving 797 rigs in service. There were 1,059 US oil rigs in service for the same time last year. Canada gained 16 rigs, bringing the total to 38.

Today's currency and equity market action:

  • The US dollar dipped 0.3% on Friday, giving most other foreign currencies a boost, including the loonie, which rose 0.3% for the day.

  • UK Prime Minister Theresa May announced her resignation effective June 7, after which her party will elect a new leader. Despite the news, the pound rose 0.4% on Friday, recovering all losses from earlier in the week.

  • Equity markets in New York and Toronto mostly moved higher. The NYSE gained 0.5%, while the NASDAQ and rose 0.1%. The S&P 500 also rose 0.1% for the day, but posted its third consecutive weekly loss, falling over 1% w/w. Toronto rose 0.4% for the day, but also ended the week 1% lower.

  • The US energy sector rose 0.2% on Friday, while Canadian energy stocks gained 0.4%. For the week, the SPX energy sector declined 3.4%, while TSX energy stocks posted a 5.5% loss.

Today's geopolitical news:

  • The US government deployed 1,500 troops to the Middle East, after it concluded Iran's Revolutionary Guards were responsible for attacking crude and product tankers in the Strait of Hormuz earlier this month. There are about 70,000 American troops already stationed across the region.

  • German shipper BSM has legally detained three PDVSA oil tankers, in hopes of collecting on payments owed. BSM operates 13 out the 32 tankers owned by the Venezuelan oil firm. Another American shipping firm terminated its contract due to US sanctions. Venezuela's exports have averaged 800,000 bbl/day so far this month, down from 1.4 million bbl/day before US sanctions were imposed.

Today's other notable energy news:

  • BC's Court of Appeal unanimously ruled that the province cannot restrict the flow of bitumen through an interprovincial pipeline which already has federal approvals in place. The judges called the lawsuit a deliberate attempt to stop the Trans Mountain Expansion Project. The province is expected to file an appeal with the Supreme Court of Canada.

  • According to Gibson Energy CEO Steve Spaulding, crude-by-rail loadings out of its Hardisty terminal will rise from the current 60 trains per month to 90 trains by the end of the summer, translating to roughly 200,000 bbl/day. The CEO says the shipments mark a new record for the company. The Hardisty rail loading terminal is serviced by CP Rail and owned by USD Partners.

  • Tallgrass Energy temporarily shutdown the southern end of its 320,000 bbl/day Pony Express pipeline due to flooding in Oklahoma. The affected segment runs between Sterling, Colorado to Cushing, Oklahoma. The company says the line will be restarted as soon as weather permits.

  • According to Reuters, Total is looking to offload about one-third of its stake in the massive Kashagan oil field, located offshore Kazakhstan in the Caspian Sea. Kashagan is one of the world’s largest oilfields, producing about 400,000 bbl/day. Total's 16.8% stake is estimated to be worth about US$9 billion. Kashagan is jointly owned with Eni, Shell, ExxonMobil, KazMunayGas, Japan's Inpex and China's CNPC.

  • Toronto-based Brookfield Business Partners (BBU) launched a hostile bid to buyout remaining shares of Teekay Offshore Partners, for just US$1.05 a share. The move has been blasted as being "unjustifiably low" by some of Teekay's other investors, who say the company is worth at least US$4 a share. BBU is a subsidiary of Brookfield Asset Management, and presently owns 73% of Teekay Offshore. 

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$68.69▲1.450.47
 
86.29
WTI$58.63▲1.242.53
 
76.41
CDN LT$50.53▲1.420.83
 
69.32
C5+$52.68▲1.437.04
 
71.40
WCS$42.28▲1.712.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAY 24   █ MAY 17   █ MAY 10   █ MAY 3   (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
MEG Energy (MEG +4.3%)
Gran Tierra (GTE +3.4%)
CES Energy (CEU +2.7%)
Parex Resources (PXT +2.4%)
Altagas (ALA +1.7%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Ensign Energy Svcs (ESI -2.4%)
Encana (ECA -1.7%)
Shawcor (SCL -1.6%)
Baytex Energy (BTE -1.3%)
Enerplus (ERF -1.1%)
12-MO
LOWS
Nuvista Energy (NVA +1%)
Peyto Exploration (PEY +1.2%)
Seven Generations (VII +0.1%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU41.81▲1.135.53
 
55.47D   W
Imperial OilIMO36.75▲0.733.52
 
44.91D   W
Husky EnergyHSE12.57▲0.212.31
 
22.99D   W
MIDSTREAM
EnbridgeENB50.35▲1.139.40
 
51.20D   W
TransCanadaTRP65.88▲1.247.90
 
66.00D   W
Pembina PipelinePPL48.29▲0.739.15
 
50.65D   W
Inter PipelineIPL20.34▼-0.518.60
 
25.66D   W
Keyera KEY32.94▼-0.624.05
 
38.91D   W
Gibson EnergyGEI22.23▼-0.616.76
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ34.99▲0.530.11
 
49.08D   W
Cenovus EnergyCVE11.08▼-0.28.74
 
14.84D   W
EncanaECA7.94▼-1.76.90
 
18.54D   W
TourmalineTOU17.86▲0.715.84
 
26.11D   W
Vermilion EnergyVET29.19▲1.126.67
 
49.67D   W
SERVICES
Pason SystemsPSI19.04▼-0.517.18
 
24.57D   W
EnerflexEFX17.76▼-0.813.55
 
20.38D   W
Mullen Group MTL10.05▼-0.69.39
 
16.93D   W
ShawcorSCL17.47▼-1.615.11
 
28.89D   W
Secure EnergySES7.15▼-0.16.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI40.00▲0.630.01
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Ntl-Oilwell Varco (NOV +1.3%)
Occidental Petro (OXY +1.1%)
Valero Energy (VLO +1.1%)
Pioneer Natural Res (PXD +1%)
Phillips 66 (PSX +0.8%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Baker Hughes (BHGE -3.7%)
Halliburton (HAL -2.3%)
EOG Resources (EOG -1.9%)
Concho Res (CXO -1.6%)
Helmerich & Payne (HP -1.5%)
12-MO
LOWS
Halliburton (HAL -2.3%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM74.10▲0.464.65
 
87.36D   W
ChevronCVX118.71▲0.7100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.06▲0.514.62
 
20.57D   W
Williams CoWMB26.99▼-0.120.36
 
32.22D   W
ONEOKOKE65.66▲0.550.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP59.88▲0.656.75
 
80.24D   W
EOG ResourcesEOG87.16▼-1.982.04
 
133.53D   W
Occidental PetroOXY53.47▲1.151.29
 
87.67D   W
Anadarko PetroAPC71.99▼-0.440.40
 
76.70D   W
Pioneer Natural ResPXD147.00▲1.0119.08
 
198.61D   W
SERVICES
SchlumbergerSLB37.00▼-1.334.99
 
72.72D   W
HalliburtonHAL22.97▼-2.322.87
 
52.61D   W
Baker HughesBHGE22.21▼-3.720.09
 
36.42D   W
Ntl-Oilwell VarcoNOV22.39▲1.321.67
 
49.08D   W
TechnipFMCFTI22.01▼-0.618.20
 
33.60D   W
REFINERS
Marathon PetroMPC50.29▲0.349.71
 
88.45D   W
Phillips 66PSX82.94▲0.878.44
 
123.97D   W
Valero EnergyVLO76.22▲1.168.81
 
126.98D   W
HollyFrontierHFC41.11▲0.340.74
 
83.28D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A63.30▲1.355.04
 
71.85D   W
TotalTOT53.42▲0.849.70
 
65.69D   W
BPBP41.76▲1.036.28
 
47.57D   W
EniE31.52▲1.729.75
 
39.16D   W
EquinorEQNR19.95▲0.119.63
 
28.93D   W
ANALYST RATINGS

UPGRADES

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

DOWNGRADES

  • None

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 rebound despite another stock market sell-off

Oil prices rebound despite another stock market sell-off

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

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