Oil prices log another day of gains, sending Canadian benchmarks up over 10% for the week

Oil prices log another day of gains, sending Canadian benchmarks up over 10% for the week

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Today's energy market update:

  • Oil prices ended Friday with another small uptick, helped by ongoing tensions in the Middle East and continued softness in the US dollar.

  • Both Brent and WTI gained over 1% for the day, bringing weekly gains to 5.1% and 9.4%, respectively.

  • Canadian Light rose 1.6% on Friday, bringing this week's gains to 12%. WCS rose 1.8% for the day, and almost 11% for the week. Discounts on Canadian crude were little moved on Friday.

  • RBOB gasoline prices shot up almost 4% after a fire was reported at a major East Coast refinery. For the week, wholesale gasoline prices gained over 7%.

  • Henry Hub ended the day little changed, but lost over 9% for the week. In Western Canada, AECO spot prices went negative on Thursday.

  • According to Baker Hughes, US drillers added one oil rig, bringing the total to 789. Canada added 11 rigs, bringing total oil rigs in service to 80.

Today's currency and equity market update:

  • After declining all week, bond yields mostly moved higher on Friday, particularly in the US. The US dollar posted a third consecutive day of steep declines, shedding 1.4% for the week. The loonie dipped slightly on Friday, but held on to a 1.5% gain w/w.

  • Markets opened higher at the start of the trading day, but traders hit the sell button before heading out for the weekend. The NYSE and NASDAQ lost about 0.25% for the day, but posted a 2% and 3% gain for the week, respectively. The S&P 500 touched an intraday record-high on Friday morning, but closed the trading day about 0.1% lower. For the week, the SPX ad DJIA both rose over 2%. US energy stocks rose 0.8% for the day and over 5% for the week.

  • The TSX dropped 0.3% on Friday, cutting this week's gains to 1.4%. The TSX energy sector shed 0.8% for the day, but logged the first weekly gain in over 2 months, rising 1.4% w/w.

Today's political news:

  • The Canadian Senate passed Bill C-69 on Thursday, which would see a complete overhaul of the regulatory review process. Speaking in Quebec, Environment Minster Catherine McKenna called the legislation "great for investor confidence" while Conservative Leader Andrew Scheer says the law will effectively "phase out Canada's oil and gas industry."

  • The Senate also rubber-stamped Bill C-48, banning crude tankers from docking anywhere between the northern tip of Vancouver Island and the Alaskan border. Crude tanker running to and from Alaska to Washington State would not be affected by the legislation, neither would LNG tankers or vessels carrying fuel products for BC consumers.

  • According to New York Times, President Trump ordered airstrikes against Iran for yesterday's downing of a US$130 million military drone, but called off the attacks just 10 minutes before pulling the trigger. The President says he changed his mind to save 150 Iranian lives, and remains open to diplomatic discussions.

Today's other notable energy news:

  • Three explosions sparked a massive refinery fire in Philadelphia, injuring four people and sending gasoline prices higher on the East Coast. Operator Philadelphia Energy Solutions (PES) says the fire was mostly fuelled by propane, which affected an alkylation unit, but the complex continues to run at reduced rates. The PES facility processes 335,000 bbl/day of crude, making it the largest refinery on the East Coast. The company emerged from bankruptcy protection last summer, and has since been working to reduce operating costs.

  • Energy Transfer Partners announced plans to double capacity on the Dakota Access Pipeline. Capacity would increase from the current 570,000 bbl/day to about 1.1 million bbl/day, through the addition of more pumping horsepower. Production out of North Dakota hit a record 1.4 million bbl/day in January of this year.

  • ARC Resources cut its 2019 capital expenditures budget by $75 million to $700 million, due to the deferment of a gas processing plant. The Attachie West Phase I project will now be delayed to mid-2022. CEO Myron Stadnyk blamed the slowdown in spending on "reduced commodity prices." Next year's capex budget will be cut to between $550 and $625 million.

  • ExxonMobil's US$53 billion deal with Iraq to boost output from the county's southern oilfields hit the skids this week due to escalating tensions with neighbouring Iran, and disagreements over wording of production-sharing contracts. Exxon evacuated its Iraqi staff twice in the past few weeks — once in May, due to unspecified security threats, and again this week after its Basra office was targeted by rocket launches.

  • Imperial Oil has been cleared by the TSX to buyback up 5% of its outstanding float over the next 12 months, to a maximum of 38.2 million shares.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$65.20▲1.250.47
 
86.29
WTI$57.43▲1.442.53
 
76.41
CDN LT$50.93▲1.620.83
 
69.32
C5+$52.43▲1.537.04
 
71.40
WCS$43.78▲1.812.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUN 21   █ JUN 14   █ JUN 7   █ MAY 31   (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
CES Energy (CEU +4%)
Gran Tierra (GTE +2.2%)
Shawcor (SCL +1.4%)
Gibson Energy (GEI +1.2%)
Whitecap Res (WCP +1.2%)
12-MO
HIGHS
Gibson Energy (GEI +1.2%)
TSX BEARISH INDICATORS
BOTTOM
5
Ensign Energy Svcs (ESI -3.7%)
Birchcliff Energy (BIR -3.2%)
TORC O&G (TOG -2.6%)
Crescent Point (CPG -2.5%)
Mullen Group (MTL -2.1%)
12-MO
LOWS
Mullen Group (MTL -2.1%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU41.75▼-0.635.53
 
55.47D   W
Imperial OilIMO36.73▼-2.033.52
 
44.91D   W
Husky EnergyHSE12.68▼-1.712.27
 
22.99D   W
MIDSTREAM
EnbridgeENB46.64▼-0.139.40
 
51.22D   W
TC EnergyTRP65.80▼-0.247.90
 
66.93D   W
Pembina PipelinePPL49.03▼-0.139.15
 
50.65D   W
Inter PipelineIPL20.11▼-1.018.60
 
25.66D   W
Keyera KEY33.46▼-0.524.05
 
38.91D   W
Gibson EnergyGEI24.03▲1.216.90
 
24.18D   W
LARGE CAP E&P
Cdn Natural ResCNQ36.35▼-0.830.11
 
49.08D   W
Cenovus EnergyCVE11.66▼-1.48.74
 
14.84D   W
EncanaECA6.52▼-0.36.12
 
18.54D   W
TourmalineTOU16.80▲0.415.39
 
25.79D   W
Vermilion EnergyVET28.44▼-0.326.54
 
49.67D   W
SERVICES
Pason SystemsPSI18.90▼-0.517.18
 
24.57D   W
EnerflexEFX16.770.013.55
 
20.38D   W
Mullen Group MTL9.44▼-2.19.36
 
16.93D   W
ShawcorSCL17.98▲1.415.11
 
28.89D   W
Secure EnergySES7.07▼-1.06.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.96▲0.731.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Baker Hughes (BHGE +3.3%)
Valero Energy (VLO +2.7%)
Diamondback (FANG +2.1%)
Concho Res (CXO +1.8%)
ONEOK (OKE +1.7%)
12-MO
HIGHS
Kinder Morgan (KMI +1.3%)
SPX BEARISH INDICATORS
BOTTOM
5
Ntl-Oilwell Varco (NOV -1.8%)
Occidental Petro (OXY -1.4%)
Noble Energy (NBL -0.9%)
Cabot O&G (COG -0.7%)
ConocoPhillips (COP -0.6%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM77.69▲1.464.65
 
87.36D   W
ChevronCVX124.93▲0.5100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI21.38▲1.314.62
 
21.40D   W
Williams CoWMB27.70▲1.420.36
 
32.22D   W
ONEOKOKE68.94▲1.750.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP60.33▼-0.656.75
 
80.24D   W
EOG ResourcesEOG92.37▲1.080.41
 
133.53D   W
Occidental PetroOXY50.61▼-1.447.00
 
86.60D   W
Anadarko PetroAPC70.31▼-0.240.40
 
76.70D   W
Pioneer Natural ResPXD155.21▲0.6119.08
 
195.00D   W
SERVICES
SchlumbergerSLB38.88▲1.734.46
 
69.61D   W
HalliburtonHAL22.84▼-0.220.98
 
47.35D   W
Baker HughesBHGE25.17▲3.320.09
 
35.55D   W
Ntl-Oilwell VarcoNOV21.32▼-1.819.57
 
49.08D   W
TechnipFMCFTI24.85▲0.418.20
 
33.60D   W
REFINERS
Marathon PetroMPC52.66▲1.445.47
 
88.45D   W
Phillips 66PSX90.58▼-0.378.44
 
123.97D   W
Valero EnergyVLO81.91▲2.768.81
 
122.42D   W
HollyFrontierHFC44.12▲1.137.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A65.70▲0.355.04
 
71.85D   W
TotalTOT55.37▲0.849.70
 
65.69D   W
BPBP42.45▲1.536.28
 
47.25D   W
EniE33.02▲1.929.75
 
39.16D   W
EquinorEQNR20.25▲1.418.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Phillips 66 (PSX): Upgraded from Neutral to Buy at Citigroup.

DOWNGRADES

  • CVR Energy (CVI): 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
Canadian oil prices move up on Monday, as differentials narrow

Canadian oil prices move up on Monday, as differentials narrow

Mideast drone strike boosts oil prices, sending U.S. markets to record highs

Mideast drone strike boosts oil prices, sending U.S. markets to record highs

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