Falling crude stockpiles and record Chinese demand give energy commodities a boost

Falling crude stockpiles and record Chinese demand give energy commodities a boost

Today's energy market update:

  • A bullish US inventory report and record crude imports into China helped boost energy commodities on Wednesday, reversing most of Tuesday's losses.

  • Brent gained 0.7% while WTI rose 1.2%. Canadian light and heavy crude rose on par with WTI, as differentials were little changed for the day.

  • Heating oil and gasoline prices also rose about 1%, while Henry Hub posted a 3% gain.

  • The US Energy Information Administration unexpectedly reported a 4 million barrel decline in crude stockpiles for last week, and a slight drop in total US crude output.

  • China imported a record 10.6 million bbl/day of crude last month, up 15% from the previous month. The country averaged 10.0 million bbl/day so far this year, far exceeding refinery demand. Analysts speculate Chinese refiners are stockpiling crude in anticipation of lower Iranian crude exports.

Today's equity market update:

  • Global markets were mixed on Wednesday. European exchanges moved higher overnight while most Asian markets ended the trading day lower.

  • In New York, the NYSE dipped 0.1% while the S&P 500 declined 0.2%. In Toronto, the TSX rose 0.2%.

  • Energy was little changed in the US, but gained 1.7% on the TSX. US refining stocks were the worst hit subsector for the day.

Today's other notable energy news:

  • MEG Energy received $30 million in funding from both federal and provincial levels of government for Phase 3 of its eMVAPEX Pilot. The technology has the potential to reduce GHG emissions by 40%.

  • Anadarko Petroleum is expected to green-light its massive US$20 billion Mozambique LNG project on June 18. CEO Al Walker says he has now secured sufficient financing and supply contracts to move forward on the export terminal. ExxonMobil is also planning to build an LNG terminal in the region, potentially making Mozambique one of the world's largest LNG exporters.

  • Marathon Petroleum announced plans to combine its midstream subsidiaries MPLX and Andeavor Logistics (ANDX) in a US$9 billion stock-swap deal. ANDX shareholders will receive 1.135 MPLX shares, roughly a 7% premium to yesterday's close.

  • ExxonMobil announced plans to invest US$100 million over the next 10 years with the US Department of Energy to advance lower-emissions technologies, including biofuels and carbon capture.

  • Phillips 66 boosted their quarterly dividend 12.5% to US$0.90 per share.

Today's notable first quarter earnings:

  • Pengrowth Energy posted a $31 million loss in the first quarter, despite a major improvement in netbacks. Production dipped 6% y/y to 22,764 boe/day, weighted 82% oil. The company says its Strategic Review is proceeding as planned, which may potentially result in a merger, sale or debt refinancing.

  • Tourmaline Oil Corp posted a Q1 net profit of $88 million, down 32% y/y. First quarter production averaged 293,434 boe/day, up 9% y/y, and topped 300,000 boe/day during the month of March. Netbacks improved 9% to $16.65/boe. Tourmaline also boosted its quarterly dividend 20% to $0.12 per share.

  • Kelt Exploration posted $9.4 million profit in the first quarter, on revenues of $103 million. Production was little changed at 27,057 boe/day. Netbacks improved 14% to $23.39/boe.

  • Perpetual Energy reported a net loss of $5 million, on revenues of $22 million. Production declined 20% to 10,240 boe/day, mainly due to a big decline in gas output. Netbacks improved 4% to $13.36/boe.

  • Chesapeake Energy posted a first quarter loss of US$27 million, down from a US$16 million profit for the same time last year. Production declined 13% y/y to 484,000 boe/day, weighted 23% oil.

  • Marathon Petroleum posted a surprise first quarter loss of US$7 million, down from a US$37 million profit for the first quarter of 2018. Revenues rose 50% to US$28.6 billion. Losses at the company's Refining and Marketing division widened to US$334 million, almost triple the same time last year.

  • Diamondback Energy posted a Q1 profit of US$10 million, including a US$268 million hedging loss. Production averaged 262,600 boe/day, up 156% y/y. The company's board also approved a US$2 billion stock buyback program.

  • TransCanada subsidiary TC Pipelines reported a net profit of US$93 million in the first quarter, little changed from the same time last year.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$70.37▲0.750.47
 
86.29
WTI$62.12▲1.242.53
 
76.41
CDN LT$57.09▲1.120.83
 
69.32
C5+$57.93▲1.237.04
 
71.40
WCS$49.56▲1.212.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ MAY 8   █ MAY 1   █ APR 24   █ APR 17   (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
TORC O&G (TOG +6.1%)
Crescent Point (CPG +5.2%)
Parex Resources (PXT +5.2%)
Birchcliff Energy (BIR +4.8%)
Whitecap Res (WCP +4%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Pason Systems (PSI -3.6%)
Peyto Exploration (PEY -0.7%)
Shawcor (SCL -0.6%)
Inter Pipeline (IPL -0.5%)
Enerflex (EFX -0.1%)
12-MO
LOWS
Peyto Exploration (PEY -0.7%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU43.88▲2.235.53
 
55.47D   W
Imperial OilIMO38.47▲0.933.52
 
44.91D   W
Husky EnergyHSE13.77▲0.813.21
 
22.99D   W
MIDSTREAM
EnbridgeENB49.52▲0.539.40
 
51.20D   W
TransCanadaTRP63.10▲0.547.90
 
64.46D   W
Pembina PipelinePPL47.35▲0.339.15
 
50.65D   W
Inter PipelineIPL20.95▼-0.518.60
 
25.66D   W
Keyera KEY31.30▲2.424.05
 
38.91D   W
Gibson EnergyGEI22.22▲3.416.64
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ37.91▲1.730.11
 
49.08D   W
Cenovus EnergyCVE12.06▲0.88.74
 
14.84D   W
EncanaECA9.22▲0.36.90
 
18.54D   W
TourmalineTOU19.92▲3.715.84
 
26.19D   W
Vermilion EnergyVET31.96▲3.426.67
 
49.67D   W
SERVICES
Pason SystemsPSI19.65▼-3.617.18
 
24.57D   W
EnerflexEFX16.98▼-0.113.55
 
20.38D   W
Mullen Group MTL9.93▲1.39.39
 
16.93D   W
ShawcorSCL19.12▼-0.615.11
 
28.89D   W
Secure EnergySES7.67▲0.86.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI40.25▼-0.130.01
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Diamondback (FANG +7.8%)
Pioneer Natural Res (PXD +3.9%)
Concho Res (CXO +3.7%)
EOG Resources (EOG +2.5%)
Cimarex Energy (XEC +1.9%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Marathon Petro (MPC -7.1%)
HollyFrontier (HFC -3.9%)
Valero Energy (VLO -2.3%)
Ntl-Oilwell Varco (NOV -2.1%)
Halliburton (HAL -1.6%)
12-MO
LOWS
HollyFrontier (HFC -3.9%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM76.84▲0.264.65
 
87.36D   W
ChevronCVX117.50▼-0.6100.22
 
131.08D   W
MIDSTREAM
Kinder MorganKMI19.67▲0.614.62
 
20.44D   W
Williams CoWMB27.09▼-1.620.36
 
32.22D   W
ONEOKOKE66.02▼-0.550.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP61.43▲0.756.75
 
80.24D   W
EOG ResourcesEOG94.03▲2.582.04
 
133.53D   W
Occidental PetroOXY60.21▲0.956.83
 
87.67D   W
Anadarko PetroAPC75.86▲0.140.40
 
76.70D   W
Pioneer Natural ResPXD153.77▲3.9119.08
 
213.40D   W
SERVICES
SchlumbergerSLB40.27▼-0.834.99
 
75.43D   W
HalliburtonHAL26.50▼-1.624.70
 
54.91D   W
Baker HughesBHGE22.95▼-1.120.09
 
37.76D   W
Ntl-Oilwell VarcoNOV24.82▼-2.124.04
 
49.08D   W
TechnipFMCFTI22.84▲0.118.20
 
34.39D   W
REFINERS
Marathon PetroMPC55.23▼-7.154.29
 
88.45D   W
Phillips 66PSX85.90▼-0.878.44
 
123.97D   W
Valero EnergyVLO82.40▼-2.368.81
 
126.98D   W
HollyFrontierHFC43.72▼-3.943.66
 
83.28D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A62.71▲0.855.04
 
73.86D   W
TotalTOT52.52▲0.149.70
 
65.69D   W
BPBP42.28▲0.136.28
 
47.83D   W
EniE32.41▼-0.229.75
 
40.15D   W
EquinorEQNR21.24▼-0.219.95
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Ecopetrol (EC): Upgraded from Neutral to Buy at Citigroup.

  • Gibson Energy (GEI.TO): Upgraded from Market Perform to Outperform at Raymond James.

  • Montage Resources (MR): Upgraded from Underweight to Equal Weight at Capital One.

DOWNGRADES

  • Mullen Group (MTL.TO): Downgraded from Strong Buy to Outperform at Raymond James.

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 waffle as traders await results from US/China trade talks

Oil prices waffle as traders await results from US/China trade talks

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

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

0