Energy stocks sell-off in tandem with global equity markets

Energy stocks sell-off in tandem with global equity markets

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Today's energy market update:

  • After posting mixed results on Monday, oil markets were once again mixed on Tuesday. Brent ended the day up 0.3%, moving back above US$65 a barrel, while WTI dipped 0.1%.

  • The heavy oil discount fell below US$13 a barrel, helping WCS rise 0.4%. Canadian Light rose 1.6%, as its discount to WTI narrowed by another US$0.90 a barrel.

  • Gasoline and heating oil both gained about 1%, while Henry Hub was little changed. Near month AECO prices once again dipped below US$0.50/MMBtu ($0.60/GJ), but spot prices finally moved back above zero.

  • Global equity markets mostly posted losses on Tuesday, while treasury and currency markets were little changed.

  • In New York, the NYSE declined 0.6%, while the NASDAQ fell 1.5%. The S&P 500 Large Cap Index fell almost 1%, with all sectors ending the day flat to lower. 

  • The TSX also declined about 1%. All Canadian sectors also ended the day lower.

  • Among energy names, the TSX energy basket fell 0.6%, while SPX energy posted a 0.8% loss. Except for US refining stocks, all energy subsectors posted declines on Tuesday.

Today's political news:

  • The Supreme Court of Canada will hear Saskatchewan's challenge of the federal carbon tax on December 5. The province is appealing a lower court ruling that deemed the tax constitutional. The Alberta government has applied for intervenor status on that case, while launching a similar lawsuit of its own. Another constitutionality case is pending from the Ontario Court of Appeal, after its government launched a similar lawsuit. Saskatchewan was granted intervenor status in that case, which still awaits a final verdict.

  • Finance Minster Bill Morneau announced $275 million in funding for LNG Canada's $40 billion facility, being built in Kitimat, BC. The funds include $220 million to help the company buy more energy-efficient gas turbines, and another $55 million to replace an old highway bridge in Kitimat. LNG Canada is being led by Royal Dutch Shell, who reported total revenues of US$388 billion last year.

  • Bad blood continues to simmer between President Trump and Iran after Trump threatened to "obliterate" parts of the country, should there be any further attacks on "anything American." Iranian President Hassan Rouhani responded by calling the White House "mentally retarded." President Trump signed another executive order on Monday, imposing new economic sanctions against Iranian Supreme Leader Ayatollah Ali Khamenei and several other senior officials.

Today's other notable energy news:

  • The American Petroleum Institute is forecasting a 7.6 million barrel decline in crude stockpiles for last week. Official numbers from the Energy Information Administration are due to be released Wednesday morning.

  • The International Energy Agency (IEA) says they remain concerned about Middle East tensions and stand "ready to act in an appropriate way." However, Executive Director Faith Birol concedes growing US shale output is keeping oil markets well supplied.

  • Magellan Midstream Partners is mulling the sale of a 35% stake in its Longhorn crude oil pipeline in Texas, along with other storage assets in the Gulf Coast. The company expects to raise as much as US$2 billion, which will be used to finance its growth projects. The 275,000 bbl/day Longhorn pipeline transports crude from the Permian Basin to refineries and export terminals near Houston.

  • According to Bloomberg, Argentina's Vaca Muerta has finally shipped its first cargos of light oil and LNG, almost a century after the massive formation was first discovered. Although several oil majors, including state-run YPF, Chevron, Total, Exxon and Shell, have put billions into exploration, lack of infrastructure and government regulations have caused energy exports to decline sharply since the late 1990s. Vaca Muerta holds an estimated 27 billion barrels of recoverable shale, thought to be similar in geology to the Eagle Ford Shale in the US.

  • UK chemicals firm Linde Group announced plans to spend US$1.4 billion in Singapore to boost its gasification capacity in support of ExxonMobil's planned expansion of its refining and chemicals complex in the region.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$65.05▲0.350.47
 
86.29
WTI$57.83▼0.142.53
 
76.41
CDN LT$53.48▲1.620.83
 
69.32
C5+$52.83▼0.137.04
 
71.40
WCS$44.88▲0.412.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUN 25   █ JUN 18   █ JUN 11   █ JUN 4   (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 +3.1%)
Precision Drilling (PD +1.7%)
Kelt Exploration (KEL +1%)
Mullen Group (MTL +0.8%)
Encana (ECA +0.5%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Ensign Energy Svcs (ESI -4.3%)
Nuvista Energy (NVA -3.3%)
Gran Tierra (GTE -3.3%)
CES Energy (CEU -2.6%)
Baytex Energy (BTE -2.4%)
12-MO
LOWS
Gran Tierra (GTE -3.3%)
Peyto Exploration (PEY -0.3%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU41.51▼-1.235.53
 
55.47D   W
Imperial OilIMO36.38▼-0.733.52
 
44.91D   W
Husky EnergyHSE12.620.012.27
 
22.99D   W
MIDSTREAM
EnbridgeENB45.85▼-1.039.40
 
51.22D   W
TC EnergyTRP64.94▼-0.847.90
 
66.93D   W
Pembina PipelinePPL47.97▼-1.139.15
 
50.65D   W
Inter PipelineIPL20.03▼-0.418.60
 
25.66D   W
Keyera KEY32.85▼-1.324.05
 
38.91D   W
Gibson EnergyGEI23.54▼-0.816.90
 
24.18D   W
LARGE CAP E&P
Cdn Natural ResCNQ36.31▼-0.530.11
 
49.08D   W
Cenovus EnergyCVE11.53▼-0.48.74
 
14.84D   W
EncanaECA6.34▲0.56.12
 
18.54D   W
TourmalineTOU16.72▲0.115.39
 
25.79D   W
Vermilion EnergyVET28.44▼-0.126.54
 
49.67D   W
SERVICES
Pason SystemsPSI18.40▼-2.117.18
 
24.57D   W
EnerflexEFX16.60▼-0.713.56
 
20.38D   W
Mullen Group MTL9.81▲0.89.36
 
16.93D   W
ShawcorSCL18.03▼-0.615.11
 
28.89D   W
Secure EnergySES7.02▲0.16.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.35▼-1.131.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Valero Energy (VLO +1.1%)
Hess Corp (HES +1.1%)
TechnipFMC (FTI +0.9%)
Phillips 66 (PSX +0.1%)
HollyFrontier (HFC +0.1%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Apache (APA -2.9%)
Kinder Morgan (KMI -2.7%)
Helmerich & Payne (HP -2.4%)
Diamondback (FANG -2.3%)
Pioneer Natural Res (PXD -2.1%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM76.27▼-0.964.65
 
87.36D   W
ChevronCVX123.64▼-1.0100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.58▼-2.714.62
 
21.50D   W
Williams CoWMB26.79▼-1.420.36
 
32.22D   W
ONEOKOKE66.72▼-0.950.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP59.77▼-1.256.75
 
80.24D   W
EOG ResourcesEOG90.04▼-0.680.41
 
133.53D   W
Occidental PetroOXY49.38▼-1.047.00
 
86.60D   W
Anadarko PetroAPC70.09▼0.040.40
 
76.70D   W
Pioneer Natural ResPXD148.19▼-2.1119.08
 
195.00D   W
SERVICES
SchlumbergerSLB38.58▼-0.234.46
 
69.61D   W
HalliburtonHAL22.500.020.98
 
47.03D   W
Baker HughesBHGE24.62▼-0.420.09
 
35.55D   W
Ntl-Oilwell VarcoNOV21.24▼-0.119.57
 
49.08D   W
TechnipFMCFTI24.96▲0.918.20
 
33.60D   W
REFINERS
Marathon PetroMPC51.39▼-0.345.47
 
88.45D   W
Phillips 66PSX89.83▲0.178.44
 
123.97D   W
Valero EnergyVLO81.63▲1.168.81
 
122.42D   W
HollyFrontierHFC43.88▲0.137.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A65.76▼-0.255.04
 
71.85D   W
TotalTOT55.45▼-0.549.70
 
65.69D   W
BPBP41.86▼-0.836.28
 
47.25D   W
EniE32.60▼-1.429.75
 
39.16D   W
EquinorEQNR19.73▼-1.518.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Storm Resources (SRX.TO): Upgraded from Sector Perform to Outperform at National Bank.

DOWNGRADES

  • Basic Energy Services (BAS): Downgraded from Overweight to Neutral at Piper Jaffray.

  • Crew Energy (CR.TO): Downgraded from Outperform to Sector Perform at National Bank.

  • Delek US (DK): Downgraded from Neutral to Sell at Goldman Sachs.

  • FTS International (FTSI): Downgraded from Overweight to Neutral at Piper Jaffray.

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
Gasoline prices spike higher after largest refinery on East Coast announces plans to shutdown

Gasoline prices spike higher after largest refinery on East Coast announces plans to shutdown

Canadian oil prices move up on Monday, as differentials narrow

Canadian oil prices move up on Monday, as differentials narrow

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