Crude prices and energy stocks diverge, as traders bet on higher oil prices

Crude prices and energy stocks diverge, as traders bet on higher oil prices

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Today's energy market update:

  • A mixed day in energy markets on Monday, as most energy stocks moved higher, while crude prices mostly moved lower.

  • Brent declines 1.7%, while WTI retreated 1.1%. Gasoline prices declined 2.4%, but are still managing to hold above US$1.70 a gallon.

  • Canadian Light dipped just 0.1%, as its differential to WTI narrowed by US$0.50 to US$6.50 a barrel.

  • WCS fell almost 4%, as its discount widened by almost US$1 to US$14. All Canadian benchmarks are now trading on the August contract, due to July contract expiry last Friday. WTI also switches to the August contract on Friday.

Today's currency and equity market update:

  • Bond prices held the course on Monday, as traders await news from this week's 2-day FOMC meeting, which begins tomorrow. The US dollar was little changed for the day, while the loonie gained about 0.1%.

  • A relatively quiet start to the trading week, with most global markets ending Monday flat to slightly higher. The NYSE dipped 0.1%, while the S&P 500 rose 0.1%. In Toronto, the TSX gained 0.3%.

  • Despite lower oil prices, SPX energy stocks rose 0.9%, while TSX energy stocks gained almost 1.5%, making it the best performing sector in Canada. Producers and services stocks outperformed on Monday, while Canadian midstream names were the biggest losers.

  • Most foreign ADRs listed on the NYSE bucked the uptrend and posted another day of losses.

Today's notable energy news:

  • EQM Midstream Partners now says costs on its Mountain Valley Pipeline will rise from about US$4.6 billion to as much as US$5.0 billion. Ongoing legal and regulatory challenges will delay the in service date to the middle of next year. The 300-mile long pipeline is designed to deliver 2 bcf/day of natural gas from West Virginia to Virginia, and was originally scheduled to begin service at the end of 2018. Mountain Valley is owned jointly with NextEra Energy, Consolidated Edison, AltaGas and RGC Resources.

  • Oil field services firms C&J Energy Services and Keane Group announced a US$1.8 billion "all-stock merger of equals." C&J shareholders will receive 1.6149 Keane shares for each C&J common stock owned. 

  • Midstream giant Williams Co completed its US$3.8 billion joint-venture with the Canada Pension Plan Investment Board, which will own the Ohio Valley Midstream system and the Utica East Ohio Midstream system. Williams will continue to operate the assets.

  • The Dutch government has cut output from the Groningen natural gas field by another 20% due to more seismic activity in the northern part of the country. Operators Royal Dutch Shell and ExxonMobil will be limited to 12.8 bcm/yr, down from a previous quota of 15.9 bcm/yr, and well below its 2014 peak of 54 bcm/yr.

  • Equinor and partners Ineos and Faroe Petroleum announced another two oil and gas discoveries in the Norwegian Sea. According to Reuters, the company came up dry in an Arctic exploration well, located in the Barents Sea.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$60.94▼1.750.47
 
86.29
WTI$51.93▼1.142.53
 
76.41
CDN LT$45.43▼0.120.83
 
69.32
C5+$46.43▼1.337.04
 
71.40
WCS$37.98▼3.912.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUN 17   █ JUN 10   █ JUN 3   █ MAY 27   (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
Enerplus (ERF +6.6%)
CES Energy (CEU +5%)
Gran Tierra (GTE +4.4%)
Peyto Exploration (PEY +4.4%)
Kelt Exploration (KEL +3.4%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
MEG Energy (MEG -3%)
Whitecap Res (WCP -2.9%)
Pembina Pipeline (PPL -1.1%)
Inter Pipeline (IPL -0.7%)
Enbridge (ENB -0.7%)
12-MO
LOWS
Encana (ECA +3.4%)
Vermilion Energy (VET +2.4%)
Enerplus (ERF +6.6%)
Gran Tierra (GTE +4.4%)
Kelt Exploration (KEL +3.4%)
Peyto Exploration (PEY +4.4%)
Seven Generations (VII +0.5%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU41.70▲0.335.53
 
55.47D   W
Imperial OilIMO36.55▲1.133.52
 
44.91D   W
Husky EnergyHSE12.65▼-0.412.27
 
22.99D   W
MIDSTREAM
EnbridgeENB45.94▼-0.739.40
 
51.22D   W
TC EnergyTRP65.35▼-0.547.90
 
66.93D   W
Pembina PipelinePPL47.84▼-1.139.15
 
50.65D   W
Inter PipelineIPL19.82▼-0.718.60
 
25.66D   W
Keyera KEY33.04▲2.524.05
 
38.91D   W
Gibson EnergyGEI22.99▲0.416.90
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ36.17▲1.730.11
 
49.08D   W
Cenovus EnergyCVE11.70▲3.08.74
 
14.84D   W
EncanaECA6.46▲3.46.12
 
18.54D   W
TourmalineTOU15.94▲2.415.39
 
25.79D   W
Vermilion EnergyVET27.42▲2.426.54
 
49.67D   W
SERVICES
Pason SystemsPSI18.95▲1.217.18
 
24.57D   W
EnerflexEFX16.64▲2.813.55
 
20.38D   W
Mullen Group MTL9.50▼-0.29.39
 
16.93D   W
ShawcorSCL17.53▲1.715.11
 
28.89D   W
Secure EnergySES6.80▲0.96.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.97▼-0.231.27
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Halliburton (HAL +2.8%)
Concho Res (CXO +2.7%)
Marathon Oil (MRO +2.7%)
Diamondback (FANG +2.7%)
Noble Energy (NBL +2.5%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Anadarko Petro (APC -0.1%)
Kinder Morgan (KMI -0.1%)
12-MO
LOWS
Cimarex Energy (XEC +1.8%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM75.09▲1.064.65
 
87.36D   W
ChevronCVX121.39▲0.5100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.52▼-0.114.62
 
21.25D   W
Williams CoWMB27.04▲0.220.36
 
32.22D   W
ONEOKOKE64.81▲0.550.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP59.01▲0.356.75
 
80.24D   W
EOG ResourcesEOG85.47▲0.480.41
 
133.53D   W
Occidental PetroOXY49.81▲1.047.00
 
86.60D   W
Anadarko PetroAPC69.76▼-0.140.40
 
76.70D   W
Pioneer Natural ResPXD144.61▲2.1119.08
 
195.00D   W
SERVICES
SchlumbergerSLB36.66▲2.034.46
 
69.61D   W
HalliburtonHAL21.97▲2.820.98
 
47.59D   W
Baker HughesBHGE22.40▲1.120.09
 
35.55D   W
Ntl-Oilwell VarcoNOV20.34▲1.719.57
 
49.08D   W
TechnipFMCFTI23.07▲1.518.20
 
33.60D   W
REFINERS
Marathon PetroMPC48.71▲1.645.47
 
88.45D   W
Phillips 66PSX85.91▲0.478.44
 
123.97D   W
Valero EnergyVLO76.93▲0.268.81
 
122.42D   W
HollyFrontierHFC40.94▲1.637.73
 
76.58D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A62.92▼-0.855.04
 
71.85D   W
TotalTOT52.63▼-0.949.70
 
65.69D   W
BPBP40.44▼-1.236.28
 
47.25D   W
EniE30.96▼-1.029.75
 
39.16D   W
EquinorEQNR19.32▼-0.618.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • ENI (E): Upgraded from Hold to Buy at Santander.

  • Equinor (EQNR): Upgraded from Underperform to Hold at Santander.

  • Gibson Energy (GEI.TO): Upgraded from Neutral to Overweight at JPMorgan.

DOWNGRADES

  • Kinder Morgan (KMI): Downgraded from Buy to Hold at Stifel Nicolaus.

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
• PRICE CHARTS PROVIDED BY STOCKCHARTS.COM ARE 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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