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

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Today's energy market update:

  • Oil prices got a boost from a much bigger-than-expected drawdown in US crude stockpiles.

  • WTI rose almost 3% while Brent gained just over 2%. Canadian Light moved up 0.7%, as its discount to WTI widened by US$1.15 a barrel, reversing yesterday's decline. WCS rose 3.3%, as the heavy oil discount was little changed.

  • Gasoline prices jumped 5% after the largest refinery on the East Coast announced plans to permanently cease operations later this month. Heating oil also rose 2.5%, while Henry Hub slipped almost 1%.

  • The Energy Information Administration reported a whopping 12.8 million barrel decline in US crude stockpiles for last week, the largest drawdown since last September. About half of those barrels came from the Gulf Coast. Total US output dropped to 12.1 million bbl/day, down from a record 12.4 million bbl/day in early June, while exports hit a record 3.8 million bbl/day.

Today's currency and equity market action:

  • The US Federal Reserve downplayed expectations for aggressive rate cuts in the near term, sending US and global bond yields higher. Despite the news, the greenback was unchanged for the day.

  • After a sizeable run-up in recent weeks, the Japanese yen and Swiss franc, two safe-haven currencies, both corrected on Wednesday. The loonie rose 0.3%, moving back above 76 cents.

  • Equity markets were mixed on Wednesday, as rate-sensitive defensive stocks mostly moved lower. The NSYE dipped 0.2%, while the NASDAQ rose 0.3%. In Toronto, the TSX declined 0.4%.

  • Energy was the best performing sector on both sides of the border, rising 1.5% on the SPX, and 1.6% on the TSX. All energy subsectors moved higher on Wednesday, with US refining stocks posting the biggest gains.

Today's other notable energy news:

  • Pieridae Energy announced a deal to purchase all of Royal Dutch Shell’s midstream and upstream assets in the Alberta Foothills for $190 million. The assets produce about 28,623 boe/day, consisting of 120 MMcf/day of natural gas and about 8,810 bbl/day of liquids. Pieridae will also takeover three sour gas processing plants, with a combined capacity of approximately 750 MMcf/day. The acquisition helps the company secure enough gas and financing to move forward on its $10 billion Goldboro LNG project in Nova Scotia, which is still awaiting a positive final investment decision.

  • Philadelphia Energy Solutions (PES) is expected to shutdown its 335,000 bbl/day refinery "within the next month," after a fire ripped through the complex late last week. The company has been struggling financially in recent years, and emerged from bankruptcy just last summer. The PES Philadelphia Refining Complex is the oldest and largest refining complex on the Eastern Seaboard, dating back to 1866, and employing over 1,000 people. Original owners Carlyle Group and Sunoco (a subsidiary of Energy Transfer Partners) still own a minority stake in the facility, while Credit Suisse and Bardin Hill became majority owners after bankruptcy proceedings. The move is expected to put a major squeeze on gasoline supplies on the East Coast.

  • A Texas court dismissed all claims against Kinder Morgan's US$2 billion Permian Highway Pipeline (PHP), allowing the company to begin construction. The lawsuit was launched by two landowners, who accuse state regulators of failing to consult with stakeholders, taking issue with the state's permitting process. PHP will transport up to 2.1 Bcf/day of natural gas, about 430 miles from the Waha area to other parts of Texas.

  • TechnipFMC has agreed to pay US$300 million to settle anti-corruption charges in Brazil and the US, dating back over 10 years. CEO Doug Pferdehirt says the actions were "taken by former employees" and "does not reflect the core values" of the company. The company is still working with French officials to settle a similar case.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$66.49▲2.250.47
 
86.29
WTI$59.38▲2.742.53
 
76.41
CDN LT$53.88▲0.720.83
 
69.32
C5+$54.13▲2.537.04
 
71.40
WCS$46.38▲3.312.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUN 26   █ JUN 19   █ JUN 12   █ JUN 5   (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 +8.9%)
Crescent Point (CPG +5.4%)
Parex Resources (PXT +5.2%)
Tourmaline (TOU +5%)
Enerplus (ERF +5%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Altagas (ALA -1.1%)
MEG Energy (MEG -0.8%)
Gibson Energy (GEI -0.5%)
Gran Tierra (GTE -0.5%)
Suncor Energy (SU -0.2%)
12-MO
LOWS
Gran Tierra (GTE -0.5%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU41.43▼-0.235.53
 
55.47D   W
Imperial OilIMO36.64▲0.733.52
 
44.91D   W
Husky EnergyHSE12.89▲2.112.27
 
22.99D   W
MIDSTREAM
EnbridgeENB46.01▲0.439.40
 
51.22D   W
TC EnergyTRP64.90▼-0.147.90
 
66.93D   W
Pembina PipelinePPL47.98▲0.039.15
 
50.65D   W
Inter PipelineIPL20.13▲0.518.60
 
25.66D   W
Keyera KEY33.01▲0.524.05
 
38.91D   W
Gibson EnergyGEI23.42▼-0.516.90
 
24.18D   W
LARGE CAP E&P
Cdn Natural ResCNQ36.54▲0.630.11
 
49.08D   W
Cenovus EnergyCVE11.78▲2.28.74
 
14.84D   W
EncanaECA6.63▲4.66.12
 
18.54D   W
TourmalineTOU17.56▲5.015.39
 
25.79D   W
Vermilion EnergyVET29.26▲2.926.54
 
49.67D   W
SERVICES
Pason SystemsPSI18.58▲1.017.18
 
24.57D   W
EnerflexEFX17.06▲2.813.56
 
20.38D   W
Mullen Group MTL9.86▲0.59.36
 
16.93D   W
ShawcorSCL18.23▲1.115.11
 
28.89D   W
Secure EnergySES7.29▲3.96.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.38▲0.131.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Marathon Petro (MPC +5.5%)
Hess Corp (HES +5.1%)
ConocoPhillips (COP +5%)
Valero Energy (VLO +4%)
Marathon Oil (MRO +3.5%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Cabot O&G (COG -1.4%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM76.60▲0.464.65
 
87.36D   W
ChevronCVX123.93▲0.2100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.64▲0.314.62
 
21.50D   W
Williams CoWMB27.50▲2.720.36
 
32.22D   W
ONEOKOKE67.35▲0.950.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP62.75▲5.056.75
 
80.24D   W
EOG ResourcesEOG93.09▲3.480.41
 
133.53D   W
Occidental PetroOXY50.42▲2.147.00
 
86.60D   W
Anadarko PetroAPC70.49▲0.640.40
 
76.70D   W
Pioneer Natural ResPXD151.24▲2.1119.08
 
195.00D   W
SERVICES
SchlumbergerSLB39.02▲1.134.46
 
69.61D   W
HalliburtonHAL23.20▲3.120.98
 
47.03D   W
Baker HughesBHGE24.75▲0.520.09
 
35.55D   W
Ntl-Oilwell VarcoNOV21.58▲1.619.57
 
49.08D   W
TechnipFMCFTI25.25▲1.218.20
 
33.60D   W
REFINERS
Marathon PetroMPC54.21▲5.545.47
 
88.45D   W
Phillips 66PSX92.76▲3.378.44
 
123.97D   W
Valero EnergyVLO84.93▲4.068.81
 
122.42D   W
HollyFrontierHFC44.42▲1.237.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A66.01▲0.455.04
 
71.85D   W
TotalTOT56.08▲1.149.70
 
65.69D   W
BPBP42.08▲0.536.28
 
47.25D   W
EniE32.90▲0.929.75
 
39.16D   W
EquinorEQNR20.09▲1.818.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • ConocoPhillips (COP): Upgraded from Neutral to Buy at Mizuho.

  • Williams Companies (WMB): Upgraded from Outperform to Strong Buy at Raymond James.

DOWNGRADES

  • Genesis Energy (GEL): Downgraded from Outperform to Market Perform at Raymond James.

  • HollyFrontier (HFC): Downgraded from Market Perform to Underperform at Raymond James.

  • Kinder Morgan (KMI): Downgraded from Outperform to Market Perform at Raymond James.

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
TSX energy stocks continue to unwind the June rally, despite decent recovery in crude prices

TSX energy stocks continue to unwind the June rally, despite decent recovery in crude prices

Energy stocks sell-off in tandem with global equity markets

Energy stocks sell-off in tandem with global equity markets