Rising U.S. crude stockpiles push oil prices lower, wiping out six months of gains

Rising U.S. crude stockpiles push oil prices lower, wiping out six months of gains

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Today's energy market action:

  • Another build in US crude stockpiles weighed on oil markets on Wednesday, sending crude prices lower for the second time this week.

  • Brent declined almost 4%, falling below US$60 a barrel for the first time since late-January. WTI and Canadian Light also fell about 4%. WCS slid almost 5%, returning to the levels of early January.

  • US crude inventories rose again last week, mostly due to increases at the Cushing storage hub in Oklahoma. US stockpiles are now up 46 million barrels from the levels of mid-March, and over 90 million barrels from the lows of last September.

  • Gasoline prices also took a 4% haircut, once again falling below US$1.70/gallon. US gasoline inventories also edged up last week, a fourth consecutive week of increases.

Today's currency and equity market action:

  • The US consumer price index edged up 0.1% in May, dropping the annualized inflation rate from 1.9% to 1.8%. The US Dollar Index moved up anther 0.3%, ending the day at just under 97. The loonie fell 0.4%, once again falling below 75 cents.

  • Traders were in a generally sour mood on Wednesday, as US/China trade talks appear to be going nowhere, sending markets in China and Europe lower overnight.

  • In New York, the NYSE, DJIA and S&P 500 all dipped 0.2%. US markets were in defensive mode, with energy stocks once again posting the biggest declines, falling 1.4% for the day, and wiping out all gains for the week. US energy services stocks were by far the worst performing subsector on the SPX.

  • Toronto also dipped 0.1%, as heavily-weighted financial and energy sectors dragged to the downside. TSX energy stocks declined 1.3%, once again approaching the lows of early January. Producers were the worst hit in Canada, while the big-three integrated names were the least scathed.

Today's notable energy news:

  • The Trudeau Liberals rejected most of the amendments put forward by the Senate on Bill C-69. Out of 187 amendments put forward, 62 were accepted and 37 modified, while 88 — which mostly came from Conservative Senators, were rejected outright. The bill now awaits approval in the House of Commons, before being returned to the Senate. Bill C-69 would see a complete overhaul of how major energy and natural resources projects are approved in Canada.

  • Husky Energy has agreed to pay $3.8 million in fines over its North Saskatchewan River pipeline leak in 2016. About 1,400 barrels of diluted crude was spilled in July 2016, after heavy rains caused the ground to shift. 

  • Energy regulators in Mexico have approved Royal Dutch Shell's deepwater exploration plans in the Gulf of Mexico. The company says it plans to invest almost US$400 million in exploration over the next four years, potentially leading to over US$1.3 billion in new projects.

  • India’s Reliance Industries and BP announced plans to begin developing a third gas field off India’s east coast. Combined, the three fields would see the development of 3 trillion cubic feet of gas at a cost US$5 billion. The fields are expected to produce 30 million m³/day of natural gas by 2022, which is expected to meet 10% of India's demand.

  • ExxonMobil says it has completed an expansion at its Singapore refinery, improving the plant's blending optimization and reformulation of lubricants. Singapore is home to Exxon's largest integrated refining and petrochemical complex.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$59.97▼3.750.47
 
86.29
WTI$51.14▼4.042.53
 
76.41
CDN LT$43.98▼3.920.83
 
69.32
C5+$45.38▼4.537.04
 
71.40
WCS$37.87▼4.812.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUN 12   █ JUN 5   █ MAY 29   █ MAY 22   (USD/BBL)
MARKET OVERVIEW
MARKETS
CURRENCIES & YIELDS
TSX SECTORS
TSX SECTORS - 52WK
SPX SECTORS
SPX SECTORS - 52WK
ENERGY SECTORS

TSX ENERGY SUB-SECTORS

SPX ENERGY SUB-SECTORS
TSX ENERGY STOCKS
TSX BULLISH INDICATORS
TOP 5
Shawcor (SCL +1.5%)
Suncor Energy (SU +0.9%)
MEG Energy (MEG +0.2%)
Imperial Oil (IMO 0%)
Husky Energy (HSE 0%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Precision Drilling (PD -7.5%)
Encana (ECA -6.6%)
Kelt Exploration (KEL -6.1%)
Crescent Point (CPG -5.2%)
Baytex Energy (BTE -5%)
12-MO
LOWS
Encana (ECA -6.6%)
Tourmaline (TOU -3.9%)
ARC Resources (ARX -1.8%)
Enerplus (ERF -2%)
Gran Tierra (GTE -3.4%)
Kelt Exploration (KEL -6.1%)
Nuvista Energy (NVA -3.1%)
Precision Drilling (PD -7.5%)
Peyto Exploration (PEY -3.9%)
TORC O&G (TOG -4.3%)
Seven Generations (VII -3.3%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU41.01▲0.935.53
 
55.47D   W
Imperial OilIMO35.990.033.52
 
44.91D   W
Husky EnergyHSE12.550.012.27
 
22.99D   W
MIDSTREAM
EnbridgeENB45.59▼-1.339.40
 
51.22D   W
TC EnergyTRP65.27▼-1.147.90
 
66.93D   W
Pembina PipelinePPL48.01▼-1.239.15
 
50.65D   W
Inter PipelineIPL20.15▼-1.518.60
 
25.66D   W
Keyera KEY31.70▼-2.624.05
 
38.91D   W
Gibson EnergyGEI22.08▼-1.916.90
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ35.78▼-1.030.11
 
49.08D   W
Cenovus EnergyCVE11.02▼-1.38.74
 
14.84D   W
EncanaECA6.37▼-6.66.35
 
18.54D   W
TourmalineTOU15.86▼-3.915.84
 
25.79D   W
Vermilion EnergyVET26.76▼-2.226.67
 
49.67D   W
SERVICES
Pason SystemsPSI18.75▼-0.617.18
 
24.57D   W
EnerflexEFX15.86▼-0.913.55
 
20.38D   W
Mullen Group MTL9.47▼-1.89.39
 
16.93D   W
ShawcorSCL17.49▲1.515.11
 
28.89D   W
Secure EnergySES6.75▼-2.06.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.73▼-1.031.27
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Valero Energy (VLO +0.2%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Halliburton (HAL -4.6%)
Noble Energy (NBL -4.4%)
Helmerich & Payne (HP -3.7%)
Baker Hughes (BHGE -3.7%)
Ntl-Oilwell Varco (NOV -3.6%)
12-MO
LOWS
Cimarex Energy (XEC -3.3%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM74.03▼-1.164.65
 
87.36D   W
ChevronCVX120.19▼-0.8100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.38▼-1.914.62
 
21.25D   W
Williams CoWMB27.21▼-1.520.36
 
32.22D   W
ONEOKOKE64.45▼-1.950.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP58.55▼-0.356.75
 
80.24D   W
EOG ResourcesEOG85.03▼-1.780.41
 
133.53D   W
Occidental PetroOXY48.79▼-0.547.00
 
86.60D   W
Anadarko PetroAPC69.78▼-0.440.40
 
76.70D   W
Pioneer Natural ResPXD141.32▼-3.3119.08
 
195.00D   W
SERVICES
SchlumbergerSLB35.58▼-3.034.46
 
70.47D   W
HalliburtonHAL21.07▼-4.620.98
 
48.29D   W
Baker HughesBHGE22.30▼-3.720.09
 
35.55D   W
Ntl-Oilwell VarcoNOV20.54▼-3.620.14
 
49.08D   W
TechnipFMCFTI22.11▼-3.218.20
 
33.60D   W
REFINERS
Marathon PetroMPC46.97▼-1.745.47
 
88.45D   W
Phillips 66PSX83.25▼-1.778.44
 
123.97D   W
Valero EnergyVLO76.50▲0.268.81
 
122.42D   W
HollyFrontierHFC39.59▼-2.337.73
 
76.64D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A63.49▼-1.655.04
 
71.85D   W
TotalTOT52.81▼-3.149.70
 
65.69D   W
BPBP41.06▼-3.036.28
 
47.25D   W
EniE30.95▼-2.029.75
 
39.16D   W
EquinorEQNR19.32▼-3.118.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • None.

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
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