Oil prices post a loss on Friday, but end the month much improved

Oil prices post a loss on Friday, but end the month much improved

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Today's energy market update:

  • Despite a good day in equity markets, energy commodities closed out the first half of 2019 with another loss on Friday.

  • Brent was roughly unchanged, while WTI fell 1.6%. For the month of June, Brent gained just over 3%, while WTI moved up about 9%.

  • Canadian Light fell about 2% while WCS declined closer to 3%. For the month, Canada's light and heavy benchmarks rose 16% and 18%, respectively.

  • According to Baker Hughes, the US added 4 oil rigs this weeks, bringing the total to 793. Canada also added 4 rigs, bringing total oil rigs in service to 84.

  • According to the Energy Information Administration, US crude oil output officially topped 12 million bbl/day in April. April's production averaged 12.16 million bbl/day, surpassing the previous record of 11.96 million bbl/day reaching last December. The largest gains came from the Gulf of Mexico, Texas, North Dakota and New Mexico. Year-over-year, the country added 1.7 million bbl/day of new production.

Today's Canadian economic data:

  • Canada's economy expanded 0.3% m/m in April, much better than economists were expecting. Oil and gas extraction expanded 5.5%, due mostly to an 11% improvement in oil sands extraction. On an annualized basis, GDP growth is tracking at 1.5%.

  • The Industrial Product Price Index moved up 0.1% m/m in May. Energy and petroleum products contributed to most of the gains.

  • After six months of gains, the Raw Materials Price Index declined 2.3% in May, due mostly to a 4.2% drop in crude prices. 

Today's currency and equity market action:

  • Bond markets were little moved on Friday. The US dollar dipped 0.1% for the day, but was little changed for the week. The Canadian dollar also dipped 0.1% for the day, but ended the week up 1%.

  • US equity markets ended the trading week on a high notes, on hopes for some resolution on US/China trade talks at this weekend's G20 summit in Japan. The NYSE rose 0.5% for the day, but ended the week unchanged. The tech-heavy NASDAQ rose 0.7% on Friday, paring this week's losses to 0.3%. For the month of June, both the NYSE and NASDAQ moved up about 6% and 7%, respectively.

  • The S&P 500 gained 0.5% for the day, while the Dow Jones Industrial Average (DJIA) gained just 0.3%. For the month of June, the Dow rose over 7%, its best showing since 1938. The S&P 500 gained 7% for the month, and over 17% since the beginning of the year, its best H1 performance since 1997.

  • In Toronto, the TSX rose 0.5%, reducing this week's losses to about 1%. For the month of June, the TSX gained 2.2% moved, but still up 14% since the beginning of January.

  • In the energy space, the S&P 500 energy sector rose 1.2% for the day, helping to end the week slightly in the positive. SPX energy is now up over 11% for the month.

  • In contrast, the TSX energy sector rose just 0.3% for the day, but still ended the week 1.7% lower. The Canadian energy basket sank 2.2% during the month of June, wiping out most of the gains for this year.

Today's notable energy news:

  • Paramount Resources announced the sale of its Karr 6-18 natural gas facility and related midstream assets to CVS Midstream for $330 million in cash and $140 million in working capital, to be used to complete construction. CVS Midstream will assume operatorship once the plant is commissioned, while Paramount has signed on to a 20-year take-or-pay agreement for gas processing. Privately-held CVS Midstream has partnered up with private equity firm Northleaf Capital Partners to finance the deal.

  • At its employee day meeting this week, Imperial Oil says upstream production averaged 389,000 boe/day as of the end of May, while 359,000 bbl/day of crude was put through its Canadian refineries. Imperial is due to release second quarter earnings on August 2nd.

  • Woodfibre LNG announced a binding sales and purchase agreement with a subsidiary of BP for 750,000 t/y of LNG over 15 years, with first shipments expected to begin in 2023. The Woodfibre LNG project is located is Squmish, BC, and will have a total capacity of 2.1 million t/y. Woodfibre is a subsidiary of Pacific Oil & Gas, which is owned by Singapore's RGE Group.

  • Kinder Morgan and Tallgrass Energy announced binding open season for crude transport from the Bakken region to the Hiland Crude system, for delivery to refineries along the Pony Express network and on to Cushing, Oklahoma. Hiland has a capacity of 88,000 bbl/day while Pony Express can currently transport 375,000 bbl/day to Cushing.

  • ExxonMobil and Royal Dutch Shell are considering a return to Somalia, almost three decades after exiting the country. The companies are reportedly in discussion to revive old contracts, after the Somali government passed a new petroleum development bill earlier this year. Somalia currently does not produce any oil, but is believed to have significant reserves offshore. The country is currently planning to tender 15 offshore blocks later this year.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$66.550.050.47
 
86.29
WTI$58.47▼1.642.53
 
76.41
CDN LT$53.47▼1.820.83
 
69.32
C5+$53.47▼1.337.04
 
71.40
WCS$45.17▼2.712.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUN 28   █ JUN 21   █ JUN 14   █ JUN 7   (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
Encana (ECA +2.8%)
Gibson Energy (GEI +1.7%)
Precision Drilling (PD +1.7%)
Altagas (ALA +1.6%)
Pembina Pipeline (PPL +1.6%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
TORC O&G (TOG -3.1%)
Seven Generations (VII -3%)
Kelt Exploration (KEL -1.8%)
Mullen Group (MTL -1.6%)
Enerplus (ERF -1.4%)
12-MO
LOWS
Husky Energy (HSE -0.9%)
ARC Resources (ARX -0.9%)
Birchcliff Energy (BIR -0.8%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU40.85▲0.335.53
 
55.47D   W
Imperial OilIMO36.26▲1.133.52
 
44.91D   W
Husky EnergyHSE12.41▼-0.912.18
 
22.99D   W
MIDSTREAM
EnbridgeENB47.30▲1.639.40
 
51.22D   W
TC EnergyTRP64.92▲1.047.90
 
66.93D   W
Pembina PipelinePPL48.75▲1.639.15
 
50.65D   W
Inter PipelineIPL20.37▲1.218.60
 
25.66D   W
Keyera KEY33.70▲1.124.05
 
38.91D   W
Gibson EnergyGEI23.35▲1.716.90
 
24.18D   W
LARGE CAP E&P
Cdn Natural ResCNQ35.31▲0.430.11
 
49.08D   W
Cenovus EnergyCVE11.55▼-0.48.74
 
14.84D   W
EncanaECA6.72▲2.86.12
 
18.54D   W
TourmalineTOU16.68▼-0.115.39
 
25.79D   W
Vermilion EnergyVET28.45▲0.626.54
 
49.67D   W
SERVICES
Pason SystemsPSI18.98▲1.417.18
 
24.57D   W
EnerflexEFX17.05▲0.113.56
 
20.38D   W
Mullen Group MTL9.50▼-1.69.36
 
16.93D   W
ShawcorSCL18.32▲0.615.11
 
28.89D   W
Secure EnergySES7.14▲0.76.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.55▲0.131.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Ntl-Oilwell Varco (NOV +3.6%)
Marathon Petro (MPC +2.8%)
Cimarex Energy (XEC +2.7%)
Noble Energy (NBL +2.7%)
TechnipFMC (FTI +2.4%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Hess Corp (HES -1.1%)
ConocoPhillips (COP -0.4%)
Baker Hughes (BHGE -0.3%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM76.63▲1.164.65
 
87.36D   W
ChevronCVX124.44▲1.1100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.88▲2.314.62
 
21.50D   W
Williams CoWMB28.04▲1.920.36
 
32.22D   W
ONEOKOKE68.81▲2.150.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP61.00▼-0.456.75
 
80.24D   W
EOG ResourcesEOG93.16▲1.080.41
 
133.53D   W
Occidental PetroOXY50.28▲1.247.00
 
86.60D   W
Anadarko PetroAPC70.56▲0.040.40
 
76.70D   W
Pioneer Natural ResPXD153.86▲2.0119.08
 
193.76D   W
SERVICES
SchlumbergerSLB39.74▲1.634.46
 
69.61D   W
HalliburtonHAL22.74▲0.120.98
 
47.03D   W
Baker HughesBHGE24.63▼-0.320.09
 
35.55D   W
Ntl-Oilwell VarcoNOV22.23▲3.619.57
 
49.08D   W
TechnipFMCFTI25.94▲2.418.20
 
33.60D   W
REFINERS
Marathon PetroMPC55.88▲2.845.47
 
88.45D   W
Phillips 66PSX93.54▲1.878.44
 
123.97D   W
Valero EnergyVLO85.61▲2.168.81
 
122.42D   W
HollyFrontierHFC46.28▲2.437.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A65.07▼0.055.04
 
71.85D   W
TotalTOT55.79▲0.449.70
 
65.69D   W
BPBP41.70▲0.236.28
 
47.25D   W
EniE33.03▲0.929.75
 
39.16D   W
EquinorEQNR19.78▲0.118.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Chesapeake Energy (CHK): Upgraded from Equal Weight to Overweight at Morgan Stanley.

DOWNGRADES

  • Crew Energy (CR.TO): Downgraded from Buy to Hold at GMP Securities.

  • Husky Energy (HSE.TO): Downgraded from Buy to Hold at GMP Securities.

  • Leucrotta Exploration (LXE.V): Downgraded from Buy to Hold at GMP Securities.

  • Petrus Resources (PRQ.TO): Downgraded from Buy to Speculative Buy at GMP Securities.

  • Vermilion Energy (VET.TO): Downgraded from Buy to Hold at GMP Securities.

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 tumble another 1%, and look to retest lows of 2019

TSX energy stocks tumble another 1%, and look to retest lows of 2019

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

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