Oil markets little moved as traders await results of US/China trade talks

Oil markets little moved as traders await results of US/China trade talks

Today's energy market update:

  • Oil markets were relatively quiet on Monday, with both Brent and WTI moving up about 0.5% for the day. 

  • Canada's light and heavy benchmarks nudged up 0.3% and 0.4%, respectively, as discounts to WTI widened slightly. Edmonton Condensate (C5+) rose 0.8% as its differential to WTI narrowed.

  • Gasoline prices sank 1.5%, ending the day at US$2 a gallon. Henry Hub also declined 1.7%.

Today's currency and equity market update:

  • The Trump Administration announced a major increase in Chinese import tariffs, set to take effect on Friday if no deal is reached.

  • The news sent equity markets plunging at the beginning of the trading day, and helped boost the yen 0.6%. Markets in New York staged an impressive recovery by the closing bell, paring losses to just 0.5%. The US dollar was unchanged for the day.

  • In Toronto, the TSX was also unchanged. Energy sectors were little moved on either side of the border. US refining stocks were the worst hit subsector for the day, declining about 2%.

Today's Anadarko takeover update:

  • Occidental (OXY) sweetened its bid for Anadarko (APC), moving from 50/50 cash and stock to 78% cash. APC shareholders would now receive US$59 in cash per share, versus a previous amount of US$38.

  • The stock portion was cut from 0.6094 to 0.2934 OXY shares per APC share, making a shareholder vote no longer required. Occidental CEO Vicki Hollub says bypassing shareholder approval provides more "clarity at closing." Some major OXY shareholders, including T. Rowe Price and billionaire Carl Ichan, remain opposed to the deal and have threatened to oust board members at Occidental's annual general meeting on Friday.

  • Anadarko calls this latest offer "superior" to its deal with Chevron, and has given Chevron until Friday to either top Occidental's offer, or pay the US$1 billion termination fee.

  • If the OXY/APC deal goes through, Total has agreed to buy Anadarko's assets in Algeria, Ghana, Mozambique and South Africa for US$8.8 billion. The move is part of Occidental's plan to divest up to US$15 billion in assets to help finance its acquisition of Anadarko.

Today's other notable energy news:

  • The US Department of Commerce has denied Kinder Morgan's request to have steel tariffs wavered on its US$1.75 billion Gulf Coast Express Pipeline. About half of the 514-mile line has been sourced from Turkey, which is now subject to a 25% tariff, potentially increasing capital costs by US$80 million.

  • BP approved a Phase 2 expansion of its Thunder Horse production facility in the US Gulf of Mexico. Thunder Horse has a production capacity of 250,000 boe/day, and is jointly owned with ExxonMobil. This latest phase will add another 50,000 boe/day by 2021.

Today's notable first quarter earnings:

  • MEG Energy posted a $48 million loss in the first quarter, including a number of one-time charges for hedging and foreign exchange. Revenues rose 27% y/y to $919 million, thanks to dramatically improved realization prices for its diluted bitumen. Production at Christina Lake averaged 87,113 bbl/day in Q1, about 13,000 bbl/day below capacity due to Alberta's curtailment quotas. For the full year 2019, the company says it expects to average 90,000 to 92,000 bbl/day.

  • Gibson Energy posted a net profit of $59 million, up from $12 million for the same time last year. Revenues from continuing operations rose 4% to $1.75 billion. The company added 1.1 million barrels of storage in Hardisty this past quarter, with another 2.5 million barrels currently under construction. Gibson also says it has now completed its planned $325 million divestiture of non-core assets.

  • Occidental Petroleum posted a first quarter net profit of US$631 million, down 11% y/y. Production averaged 719,000 boe/day in Q1, including 261,000 boe/day from the Permian Basin.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$71.24▲0.650.47
 
86.29
WTI$62.25▲0.542.53
 
76.41
CDN LT$57.40▲0.320.83
 
69.32
C5+$58.06▲0.837.04
 
71.40
WCS$50.09▲0.412.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAY 6   █ APR 29   █ APR 22   █ APR 15   (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 +4.3%)
MEG Energy (MEG +3.4%)
Enerflex (EFX +3%)
Gran Tierra (GTE +2.3%)
Crescent Point (CPG +2%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Seven Generations (VII -3%)
Nuvista Energy (NVA -1.3%)
Husky Energy (HSE -1.2%)
Suncor Energy (SU -0.8%)
Vermilion Energy (VET -0.8%)
12-MO
LOWS
Seven Generations (VII -3%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU43.11▼-0.835.53
 
55.47D   W
Imperial OilIMO38.50▼-0.333.52
 
44.91D   W
Husky EnergyHSE13.87▼-1.213.21
 
22.99D   W
MIDSTREAM
EnbridgeENB49.40▲0.439.40
 
51.20D   W
TransCanadaTRP63.07▲0.747.90
 
64.46D   W
Pembina PipelinePPL47.53▼0.039.15
 
50.65D   W
Inter PipelineIPL21.29▲0.218.60
 
25.66D   W
Keyera KEY30.60▲0.224.05
 
38.91D   W
Gibson EnergyGEI21.70▼-0.216.64
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ37.68▼-0.130.11
 
49.08D   W
Cenovus EnergyCVE12.24▲0.98.74
 
14.84D   W
EncanaECA9.22▲1.86.90
 
18.54D   W
TourmalineTOU19.39▲0.915.84
 
26.19D   W
Vermilion EnergyVET32.03▼-0.826.67
 
49.67D   W
SERVICES
Pason SystemsPSI20.48▲0.117.18
 
24.57D   W
EnerflexEFX17.02▲3.013.55
 
20.38D   W
Mullen Group MTL9.750.09.39
 
16.93D   W
ShawcorSCL19.44▼-0.315.11
 
28.89D   W
Secure EnergySES7.56▲0.56.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.72▼-0.130.01
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Anadarko Petro (APC +3.8%)
Occidental Petro (OXY +1.4%)
Ntl-Oilwell Varco (NOV +1.1%)
Chevron (CVX +1%)
Devon Energy (DVN +0.7%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Phillips 66 (PSX -2.8%)
HollyFrontier (HFC -2.8%)
Valero Energy (VLO -2.3%)
Concho Res (CXO -1.5%)
TechnipFMC (FTI -1.2%)
12-MO
LOWS
HollyFrontier (HFC -2.8%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM77.13▼-0.464.65
 
87.36D   W
ChevronCVX118.40▲1.0100.22
 
131.08D   W
MIDSTREAM
Kinder MorganKMI19.44▼-0.514.62
 
20.44D   W
Williams CoWMB27.38▼-0.820.36
 
32.22D   W
ONEOKOKE66.22▼-1.050.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP61.88▼-0.256.75
 
80.24D   W
EOG ResourcesEOG91.24▲0.482.04
 
133.53D   W
Occidental PetroOXY58.77▲1.456.83
 
87.67D   W
Anadarko PetroAPC75.49▲3.840.40
 
76.70D   W
Pioneer Natural ResPXD156.29▲0.1119.08
 
213.40D   W
SERVICES
SchlumbergerSLB41.24▼-0.134.99
 
75.43D   W
HalliburtonHAL27.63▼-0.524.70
 
54.91D   W
Baker HughesBHGE23.94▼-0.820.09
 
37.76D   W
Ntl-Oilwell VarcoNOV25.70▲1.124.04
 
49.08D   W
TechnipFMCFTI23.22▼-1.218.20
 
34.39D   W
REFINERS
Marathon PetroMPC59.49▼-0.854.29
 
88.45D   W
Phillips 66PSX87.03▼-2.878.44
 
123.97D   W
Valero EnergyVLO86.39▼-2.368.81
 
126.98D   W
HollyFrontierHFC45.44▼-2.845.22
 
83.28D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A64.11▼-0.355.04
 
73.86D   W
TotalTOT53.99▼-2.249.70
 
65.69D   W
BPBP42.93▼-0.436.28
 
47.83D   W
EniE33.30▼-0.829.75
 
40.15D   W
EquinorEQNR21.48▼-1.519.95
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • None

DOWNGRADES

  • Bonavista Energy (BNP.TO): Downgraded from Neutral to Underperform at CIBC.

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
Traders flee stocks and commodities as US/China trade relations deteriorate

Traders flee stocks and commodities as US/China trade relations deteriorate

Energy stocks rebound slightly on Friday, paring losses for the week

Energy stocks rebound slightly on Friday, paring losses for the week

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