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

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Today's energy market update:

  • After yesterday's big run-up, oil prices took a breather on Wednesday, sending energy stocks slightly lower for the day.

  • Brent declined 0.5%, while WTI and Canadian Light both dipped 0.3%.

  • WCS rose 0.2%, as its discount to WTI narrowed to US$13.75 a barrel. The discount on Edmonton Condensate also narrowed to US$5, sending C5+ prices higher by 0.7%.

  • Gasoline prices rose almost 1% while heating oil was unchanged. Henry Hub sank 2.2%, falling to a new 3-year low on Wednesday.

Today's treasury, currency and equity market update:

  • According to Statistics Canada, the Consumer Price Index (CPI) rose from 2.0% in April to 2.4% in May, blamed on almost everything except gasoline. Nationally, gas prices are now down 3.8% y/y. Ex-gasoline, CPI is up 2.7% y/y. The loonie rose 0.7%, and moved back above 75 cents.

  • The US Federal Reserve held the line on interest rates today, but but signalled intentions to cut rates later this year. Shorter-duration bond yields took a big haircut on Wednesday, while yields on the 10-year sank to 2.03%, the lowest since November 2016. The US dollar fell 0.6%, sending most other global currencies higher.

  • Except for London's FTSE, most global markets moved up slightly on Wednesday, following through on Tuesday's gains. In New York, the NYSE and NASDAQ both rose 0.4%, while the S&P 500 Large Cap Index rose 0.3%. Utilities were the best performing stocks south of the border, thanks to lower interest rates. Energy stocks dipped 0.2%.

  • In Toronto, the TSX was unchanged. Energy was the worst performing sector for the day, falling 0.9%. Midstream stocks bucked the downtrend and mostly moved higher on Wednesday.

Today's notable energy news:

  • According to the Energy Information Administration, a big drawdown in Gulf Coast stockpiles helped lower total US crude inventories by over 3 million barrels last week, the first meaningful decline since early May. Total US output dipped to 12.2 million bbl/day, down from an estimated record high of 12.4 million bbl/day at the beginning of June.

  • Spanish energy major Repsol announced plans to reduce its Canadian headcount by about 30%, or roughly 230 positions. The layoffs are part of a global restructuring, and will largely be centred in Calgary, Chauvin and Edson. Repsol acquired its Canadian operations through its US$8.3 billion purchase of Talisman Energy in 2014.

  • Trans Mountain President Ian Anderson says he hopes to restart construction on the expansion pipeline as early as September. Remaining work is expected to be completed within 30 to 34 months, bringing the in service date to roughly the second or third quarter of 2022.

  • Minnesota's Pollution Control Agency and Department of Natural Resources have warned Enbridge they won't be able to issue permits for its Line 3 Replacement (L3R) project on July 1st, due to a recent court ruling that found deficiencies in the project's environmental impact statement (EIS). The courts have asked the company to model impacts on Lake Superior in the event of a spill. Enbridge says they think the modelling work "can be completed efficiently." L3R was expected to commence service in the second half of 2020, although Enbridge has yet to provide any updates since this latest setback.

  • Calgary-based Gran Tierra reported operational disruptions at some of its Columbian operations this week, blamed on submersible pump failures and blockades set-up by protesting farmers. Second quarter production averaged 36,000 boe/day, while the June average is tracking closer to 29,000 boe/day.

  • Three people were injured after rockets hit the city of Basra in southern Iraq, forcing ExxonMobil to evacuate some of its staff. Several oil fields and the US embassy were also hit earlier in the week, although no major damage was reported. Iran is suspected to be behind the attacks, although no one has claimed responsibility.

  • OPEC and friends have finally settled on a date for their highly anticipated review of production quotas. OPEC's Joint Ministerial Monitoring Committee will now meet on July 1st in Vienna, while non-OPEC members will be invited to the table on July 2nd.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$61.82▼0.550.47
 
86.29
WTI$53.76▼0.342.53
 
76.41
CDN LT$47.26▼0.320.83
 
69.32
C5+$48.76▲0.737.04
 
71.40
WCS$40.01▲0.212.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUN 19   █ JUN 12   █ JUN 5   █ MAY 29   (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
Seven Generations (VII +2.3%)
Kelt Exploration (KEL +2%)
Enerplus (ERF +0.9%)
Pembina Pipeline (PPL +0.8%)
Ensign Energy Svcs (ESI +0.8%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Gran Tierra (GTE -12.8%)
Birchcliff Energy (BIR -3.2%)
Peyto Exploration (PEY -3%)
Baytex Energy (BTE -2.4%)
Nuvista Energy (NVA -2.2%)
12-MO
LOWS
Gran Tierra (GTE -12.8%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU41.690.035.53
 
55.47D   W
Imperial OilIMO36.74▲0.233.52
 
44.91D   W
Husky EnergyHSE12.64▼-2.112.27
 
22.99D   W
MIDSTREAM
EnbridgeENB46.42▲0.339.40
 
51.22D   W
TC EnergyTRP66.04▲0.147.90
 
66.93D   W
Pembina PipelinePPL49.02▲0.839.15
 
50.65D   W
Inter PipelineIPL20.31▲0.418.60
 
25.66D   W
Keyera KEY33.65▲0.824.05
 
38.91D   W
Gibson EnergyGEI23.47▼-0.316.90
 
23.77D   W
LARGE CAP E&P
Cdn Natural ResCNQ35.87▼-1.530.11
 
49.08D   W
Cenovus EnergyCVE11.62▼-2.28.74
 
14.84D   W
EncanaECA6.42▼-2.06.12
 
18.54D   W
TourmalineTOU16.14▼-0.315.39
 
25.79D   W
Vermilion EnergyVET27.80▲0.326.54
 
49.67D   W
SERVICES
Pason SystemsPSI18.70▼-1.117.18
 
24.57D   W
EnerflexEFX16.75▼-0.413.55
 
20.38D   W
Mullen Group MTL9.62▼-0.89.39
 
16.93D   W
ShawcorSCL17.50▼-1.015.11
 
28.89D   W
Secure EnergySES7.07▼-0.16.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.67▼-0.131.57
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Baker Hughes (BHGE +1%)
Phillips 66 (PSX +0.9%)
ONEOK (OKE +0.9%)
TechnipFMC (FTI +0.9%)
Cabot O&G (COG +0.8%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Concho Res (CXO -2.2%)
Halliburton (HAL -1.9%)
Cimarex Energy (XEC -1.6%)
Schlumberger (SLB -1.2%)
Williams Co (WMB -1.1%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM75.32▼-0.664.65
 
87.36D   W
ChevronCVX122.89▼0.0100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.94▲0.714.62
 
21.25D   W
Williams CoWMB26.95▼-1.120.36
 
32.22D   W
ONEOKOKE66.25▲0.950.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP59.65▼-0.356.75
 
80.24D   W
EOG ResourcesEOG88.65▲0.480.41
 
133.53D   W
Occidental PetroOXY50.30▼-0.147.00
 
86.60D   W
Anadarko PetroAPC69.90▼0.040.40
 
76.70D   W
Pioneer Natural ResPXD148.44▼-0.9119.08
 
195.00D   W
SERVICES
SchlumbergerSLB36.51▼-1.234.46
 
69.61D   W
HalliburtonHAL21.81▼-1.920.98
 
47.35D   W
Baker HughesBHGE23.32▲1.020.09
 
35.55D   W
Ntl-Oilwell VarcoNOV20.81▲0.819.57
 
49.08D   W
TechnipFMCFTI23.97▲0.918.20
 
33.60D   W
REFINERS
Marathon PetroMPC49.66▲0.045.47
 
88.45D   W
Phillips 66PSX87.60▲0.978.44
 
123.97D   W
Valero EnergyVLO78.16▲0.568.81
 
122.42D   W
HollyFrontierHFC41.43▲0.037.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A64.38▲0.755.04
 
71.85D   W
TotalTOT54.06▲0.749.70
 
65.69D   W
BPBP41.09▲0.036.28
 
47.25D   W
EniE31.80▲0.729.75
 
39.16D   W
EquinorEQNR19.38▼-1.118.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • None.

DOWNGRADES

  • Summit Midstream Partners (SMLP): Downgraded from Buy to Neutral at Citigroup.

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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