Canadian oil prices move up on Monday, as differentials narrow
Today's energy market update:
Energy markets were mixed on Monday, despite continued weakness in the US dollar and more sanctions imposed on Iranian officials.
Brent slipped 0.5%, while WTI gained 0.8%. Canadian Light rose 3.4% as its differential to WTI narrowed by US$1.25 to US$5.25, the lowest discount since early May. WCS rose 2.1%, as its differential also narrowed by US$0.45 to US$13.20 a barrel.
Today's currency and equity market action:
Global bond yields all moved lower on Monday, giving back some of Friday's gains. After declining through most of last week, the US dollar slipped another 0.2%, while most other global currencies were flat to slightly higher. In Canada, the loonie rose 0.4%.
Exchanges in New York and Toronto moved higher in the morning but slowly drifted lower for the rest of the trading day. The NYSE and NASDAQ slipped 0.2% and 0.3%, respectively, while the TSX was unchanged.
Gold stocks and interest-sensitive utility stocks led to the upside on both sides of the border. Energy was the worst performing sector on the S&P 500, falling 0.9%. In Canada, the energy basket dipped a more modest 0.2%.
Today's notable energy news:
Iran's crude exports fell from about 500,000 bbl/day in May to just 300,000 bbl/day in June, as US-imposed sanctions scare off any last remaining buyers. The country exported about 2.5 million bbl/day in the spring of last year, before sanctions were reinstated by the US. President Trump also announced a new round of sanctions on top Iranian officials, barring them from using the international banking system.
ExxonMobil is reporting looking to exit its remaining assets offshore Norway. The company sold most of its Norwegian holdings a few years ago, but held on to about 20 mostly non-operated fields. The properties produced about 170,000 boe/day in 2017, and are estimated to be worth as much as US$4 billion.
Qatar Petroleum has selected Chevron Phillips Chemical Company as its partner for a new ethylene and derivatives complex, to be located just north of Doha, Qatar. The project includes a 1.9 million t/y ethane cracker, adding to three that are already in service. Qatar Petroleum will maintain a 70% stake, while Chevron Phillips Chemical will hold the remaining 30%.
McDermott International was awarded a large EPCI contract from Saudi Aramco for its Marjan and Zuluf fields, located offshore Saudi Arabia.
|Suncor Energy||SU||42.03||▲0.7||35.53||55.47||D W|
|Imperial Oil||IMO||36.62||▼-0.3||33.52||44.91||D W|
|Husky Energy||HSE||12.62||▼-0.5||12.27||22.99||D W|
|TC Energy||TRP||65.48||▼-0.5||47.90||66.93||D W|
|Pembina Pipeline||PPL||48.50||▼-0.7||39.15||50.65||D W|
|Inter Pipeline||IPL||20.11||0.0||18.60||25.66||D W|
|Gibson Energy||GEI||23.74||▼-1.2||16.90||24.18||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||36.49||▲0.4||30.11||49.08||D W|
|Cenovus Energy||CVE||11.58||▼-0.7||8.74||14.84||D W|
|Vermilion Energy||VET||28.46||▲0.1||26.54||49.67||D W|
|Pason Systems||PSI||18.79||▼-0.6||17.18||24.57||D W|
|Mullen Group||MTL||9.73||▲3.1||9.36||16.93||D W|
|Secure Energy||SES||7.01||▼-0.9||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||41.79||▼-0.4||31.59||47.45||D W|
|Exxon Mobil||XOM||76.95||▼-0.9||64.65||87.36||D W|
|Kinder Morgan||KMI||21.16||▼-1.0||14.62||21.50||D W|
|Williams Co||WMB||27.15||▼-2.0||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||90.56||▼-2.0||80.41||133.53||D W|
|Occidental Petro||OXY||49.89||▼-1.4||47.00||86.60||D W|
|Anadarko Petro||APC||70.11||▼-0.3||40.40||76.70||D W|
|Pioneer Natural Res||PXD||151.28||▼-2.5||119.08||195.00||D W|
|Baker Hughes||BHGE||24.72||▼-1.9||20.09||35.55||D W|
|Ntl-Oilwell Varco||NOV||21.27||▼-0.2||19.57||49.08||D W|
|Marathon Petro||MPC||51.60||▼-2.0||45.47||88.45||D W|
|Phillips 66||PSX||89.76||▼-0.9||78.44||123.97||D W|
|Valero Energy||VLO||80.76||▼-1.4||68.81||122.42||D W|
Mullen Group (MTL.TO): Upgraded from Hold to Buy at TD Sercurities.
Renewable Energy Group (REGI): Upgraded from Neutral to Buy at Roth Capital.
UPDATED: DAILY (END-OF-DAY)
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