Markets power higher as interest rates keep falling and US/China trade talks inch forward

Markets power higher as interest rates keep falling and US/China trade talks inch forward

DATA SUBSCRIPTION
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Today's energy market update:

  • Traders were in a generally positive mood on Tuesday, buoyed by falling interest rates and progress on US/China trade talks.

  • Brent rose 2%, while WTI gained almost 4%. Canadian Light also rose 4.3%, while WCS ended the day up over 5%. Differentials for Canadian crude were unchanged.

  • Gasoline and heating oil both gained almost 2% for the day.

  • The American Petroleum Institute is forecasting a small drawdown in crude stockpiles for last week, estimated at 812,000 barrels. Official numbers from the Energy Information Administration are due to be released Wednesday morning.

Today's treasury, currency and equity market update:

  • Global bond yields mostly moved lower on Tuesday, ahead of tomorrow's critical interest rate decision from the US Federal Reserve. German 10-year bonds fell to an unprecedented low of -0.32%, after ECB President Mario Draghi signalled intentions to either lower interest rates, or boost its bond-buying program. Most currencies were little changed on Tuesday.

  • US markets rallied sharply this morning, after President Trump announced plans to extend discussions with Chinese President Xi next week, ahead of the G20 meeting in Japan.

  • The NYSE, S&P 500 and TSX all rose about 1%. US energy stocks gained 1.4%, while the Canadian energy basket rose about 1%. All subsectors posted moved higher on Tuesday, with E&Ps leading to the upside.

Today's notable energy news:

  • As expected, the federal government re-approved the Trans Mountain Expansion Project (TMEP), paving the way for construction to restart later this year. Although an exact timeline was not provided, construction is expected to take about 2½ years, which would bring the in service date to early 2022 at best. Once completed, TMEP will add 590,000 bbl/day of export capacity to Canada's west coast, destined primary for refineries in Washington State, California and Asia. Opposition groups are expected to appeal the decision.

  • Anadarko Petroleum announced a positive final investment decision for the first phase of its US$20 billion Mozambique LNG project. Phase 1 will consist of two LNG trains with a total capacity of 12.9 million t/y. The company says there are about 5,000 workers already on-site, progressing construction. Once Occidental Petroleum completes its takeover of Anadarko, the project will be transferred to Total, who has yet to comment on the project. This is the largest single LNG project approved in Africa to date. 

  • Production from Iraq's West Qurna 1 oil field, located in the southern region of the country, has increased from 440,000 bbl/day to 465,000 bbl/day, now that new processing facilities and storage tanks have been brought into service. West Qurna 1 was developed by ExxonMobil, and is expected to ramp up to 490,000 bbl/day.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$62.14▲2.050.47
 
86.29
WTI$53.90▲3.842.53
 
76.41
CDN LT$47.40▲4.320.83
 
69.32
C5+$48.40▲4.237.04
 
71.40
WCS$39.95▲5.212.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUN 18   █ JUN 11   █ JUN 4   █ MAY 28   (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
TORC O&G (TOG +5.6%)
Baytex Energy (BTE +5%)
Crescent Point (CPG +4.5%)
Secure Energy (SES +4.1%)
Kelt Exploration (KEL +4.1%)
12-MO
HIGHS
Gibson Energy (GEI +2.4%)
TSX BEARISH INDICATORS
BOTTOM
5
CES Energy (CEU -2.6%)
Parkland Fuel (PKI -0.6%)
Gran Tierra (GTE -0.4%)
Pason Systems (PSI -0.2%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU41.69▼0.035.53
 
55.47D   W
Imperial OilIMO36.66▲0.333.52
 
44.91D   W
Husky EnergyHSE12.91▲2.112.27
 
22.99D   W
MIDSTREAM
EnbridgeENB46.30▲0.839.40
 
51.22D   W
TC EnergyTRP65.99▲1.047.90
 
66.93D   W
Pembina PipelinePPL48.62▲1.639.15
 
50.65D   W
Inter PipelineIPL20.24▲2.118.60
 
25.66D   W
Keyera KEY33.38▲1.024.05
 
38.91D   W
Gibson EnergyGEI23.53▲2.416.90
 
23.77D   W
LARGE CAP E&P
Cdn Natural ResCNQ36.42▲0.730.11
 
49.08D   W
Cenovus EnergyCVE11.88▲1.58.74
 
14.84D   W
EncanaECA6.55▲1.46.12
 
18.54D   W
TourmalineTOU16.19▲1.615.39
 
25.79D   W
Vermilion EnergyVET27.71▲1.126.54
 
49.67D   W
SERVICES
Pason SystemsPSI18.91▼-0.217.18
 
24.57D   W
EnerflexEFX16.81▲1.013.55
 
20.38D   W
Mullen Group MTL9.70▲2.19.39
 
16.93D   W
ShawcorSCL17.68▲0.915.11
 
28.89D   W
Secure EnergySES7.08▲4.16.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.70▼-0.631.35
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Concho Res (CXO +3.8%)
Pioneer Natural Res (PXD +3.6%)
EOG Resources (EOG +3.3%)
Baker Hughes (BHGE +3.1%)
TechnipFMC (FTI +3%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Cabot O&G (COG -0.5%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM75.74▲0.964.65
 
87.36D   W
ChevronCVX122.93▲1.3100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.80▲1.414.62
 
21.25D   W
Williams CoWMB27.26▲0.820.36
 
32.22D   W
ONEOKOKE65.67▲1.350.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP59.83▲1.456.75
 
80.24D   W
EOG ResourcesEOG88.30▲3.380.41
 
133.53D   W
Occidental PetroOXY50.35▲1.147.00
 
86.60D   W
Anadarko PetroAPC69.91▲0.240.40
 
76.70D   W
Pioneer Natural ResPXD149.79▲3.6119.08
 
195.00D   W
SERVICES
SchlumbergerSLB36.93▲0.734.46
 
69.61D   W
HalliburtonHAL22.22▲1.120.98
 
47.59D   W
Baker HughesBHGE23.09▲3.120.09
 
35.55D   W
Ntl-Oilwell VarcoNOV20.64▲1.519.57
 
49.08D   W
TechnipFMCFTI23.76▲3.018.20
 
33.60D   W
REFINERS
Marathon PetroMPC49.64▲1.945.47
 
88.45D   W
Phillips 66PSX86.80▲1.078.44
 
123.97D   W
Valero EnergyVLO77.80▲1.168.81
 
122.42D   W
HollyFrontierHFC41.42▲1.237.73
 
76.58D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A63.92▲1.655.04
 
71.85D   W
TotalTOT53.69▲1.849.70
 
65.69D   W
BPBP41.08▲1.636.28
 
47.25D   W
EniE31.58▲2.029.75
 
39.16D   W
EquinorEQNR19.60▲1.518.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Antero Resources (AR): Upgraded from Underweight to Equal Weight at Capital One.

  • Diamond Offshore Drilling (DO): Upgraded from Sell to Hold at SEB Equities.

DOWNGRADES

  • Noble (NE): Downgraded from Buy to Sell at SEB Equities.

  • Ultrapar Participacoes (UGP): Downgraded from Overweight to Equal Weight at Morgan Stanley.

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
Stocks markets power higher, but energy stocks fail to go along for the ride

Stocks markets power higher, but energy stocks fail to go along for the ride

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