Oil prices sink as U.S. output hits another record high

Oil prices sink as U.S. output hits another record high

DATA SUBSCRIPTION
Sign-up for our data subscription service and get access to our complete database of oil and gas prices and energy statistics.

Today's energy market action:

  • Crude benchmarks mostly declined on Wednesday, after the US reported another build in crude stockpiles and another record high in total crude output.

  • Brent declined 2.2% while WTI fell 3.4%, both returning to the lows of late January. Canadian Light and Edmonton Condensate both fell about 4%, while WCS fell almost 5%.

  • Gasoline, heating oil and Henry Hub natural gas each gave back about 2% for the day.

Today's currency and equity market action:

  • Weak US payroll data has increased the odds of one or more interest rate cuts in 2019, sending shorter duration bond yields lower once again. The Japanese 10-year fell to 3½ year low of -0.12%, while the German 10-year hit another all-time low of -0.22%.

  • The US dollar rose over 0.2%, reversing all of yesterday's losses, and sending most other global currencies lower for the day. The loonie dipped 0.2% to 74.50 cents.

  • After posting big gains on Tuesday, North American markets once again moved higher on Wednesday. The NYSE rose 0.4% while the NASDAQ gained 0.6%. The Dow Jones Industrial  and S&P 500 large caps both rose 0.8%. All sectors ended the day higher, except energy stocks, which shed 1.1%. Producers were the worst hit subsector, while midstream stocks got a boost from falling interest rates.

  • In Toronto, the TSX eked out a gain of 0.3%. Canadian markets were held back by a steep decline in energy stocks, which fell 2.6% and returned to the lows of late December. Producers were also the worst hit subsector in Canada.

Today's supply/demand update:

  • According to the Energy Information Administration (EIA), US crude stockpiles rose almost 7 million barrels last week, mostly due to gains in the Gulf Coast and the Cushing storage hub in Oklahoma. US crude inventories are now up almost 44 million barrels since mid-March.

  • Output from the Lower 48 was estimated to have risen by another 100,000 bbl/day last week, bringing total US production to a new record high of 12.4 million bbl/day.

  • According to Reuters, output from Kazakhstan’s Kashagan oil field reached an all-time high of 400,000 bbl/day earlier this week, and is likely to rise to 410,000 bbl/day in the next two months. Kashagan is operated by the North Caspian Oil Company, a consortium consisting of KazMunayGaz, Eni, ExxonMobil, Shell, Total, China’s CNPC and Japan’s Inpex.

Today's other notable energy news:

  • A coalition of First Nations communities from Alberta have added their names to the list of prospective buyers for the Trans Mountain pipeline assets. The newly formed Iron Coalition, co-led by the Alexis Nakota Sioux Nation, Fort McKay Métis and Papaschase First Nation, say they plan to offer all First Nations and Métis communities in Alberta equal ownership stakes. Other potential bidders include Project Reconciliation, who is seeking to represent 200 First Nations and Métis communities in Western Canada. The federal government paid $4.5 billion for the existing Trans Mountain assets. The expansion line has an estimated price tag of $6.9 billion.

  • Chemicals and refining giant LyondellBasell turfed its US$11 billion takeover of Brazilian petrochemicals firm Braskem, due to legal and financial challenges. Brazilian conglomerate Odebrecht, who holds a 38% controlling stake in Braskem, had put the division up for sale in order to help finance its debt and pay fines related to a country-wide corruption scandal. Now that the deal has fallen through, LyondellBasell says it plans to "expedite" its share buyback program.

  • ExxonMobil announced a redevelopment plan for Block 15, a mature oil field located offshore Angola, potentially adding 40,000 bbl/day of new production. The company's production-sharing agreement with state-owned Sonangol now extends operations through 2032. The field has been producing oil since 2003.

  • A joint-venture between McDermott International, Saipem and Chiyoda signed a multi-billion dollar EPC contract with Anadarko Petroleum for its massive Mozambique LNG project, which is expected to be formally sanctioned later this month. The LNG project is part of a package of assets that will be sold to Total, once Occidental Petroleum closes on its takeover of Anadarko.

  • Obsidian Energy shareholders unanimously approved a 7-for-1 reverse share spilt for both its Canadian and US-listed shares. The new shares are expected to begin trading on the NYSE and TSX on June 10, 2019.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$60.63▼2.250.47
 
86.29
WTI$51.68▼3.442.53
 
76.41
CDN LT$44.65▼4.020.83
 
69.32
C5+$46.08▼4.037.04
 
71.40
WCS$38.37▼4.612.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUN 5   █ MAY 29   █ MAY 22   █ MAY 15   (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
Gran Tierra (GTE +2.7%)
Imperial Oil (IMO +1.4%)
TC Energy (TRP +0.1%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Peyto Exploration (PEY -7.5%)
Crescent Point (CPG -7.2%)
Precision Drilling (PD -7%)
Encana (ECA -6.5%)
MEG Energy (MEG -5.8%)
12-MO
LOWS
Encana (ECA -6.5%)
ARC Resources (ARX -2.9%)
CES Energy (CEU -0.9%)
Enerplus (ERF -4.1%)
Nuvista Energy (NVA -4.1%)
Peyto Exploration (PEY -7.5%)
TORC O&G (TOG -3%)
Seven Generations (VII -2.2%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU40.24▼-0.735.53
 
55.47D   W
Imperial OilIMO36.30▲1.433.52
 
44.91D   W
Husky EnergyHSE12.55▼-3.212.31
 
22.99D   W
MIDSTREAM
EnbridgeENB47.74▼-0.339.40
 
51.22D   W
TC EnergyTRP66.20▲0.147.90
 
66.93D   W
Pembina PipelinePPL48.39▼-0.639.15
 
50.65D   W
Inter PipelineIPL20.62▼-0.218.60
 
25.66D   W
Keyera KEY32.22▼-1.324.05
 
38.91D   W
Gibson EnergyGEI22.15▼-2.116.90
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ34.78▼-3.430.11
 
49.08D   W
Cenovus EnergyCVE10.36▼-3.68.74
 
14.84D   W
EncanaECA6.72▼-6.56.70
 
18.54D   W
TourmalineTOU16.85▼-4.615.84
 
25.79D   W
Vermilion EnergyVET28.12▼-2.426.67
 
49.67D   W
SERVICES
Pason SystemsPSI18.90▼-1.717.18
 
24.57D   W
EnerflexEFX16.41▼-1.413.55
 
20.38D   W
Mullen Group MTL9.97▼-0.39.39
 
16.93D   W
ShawcorSCL17.11▼-2.015.11
 
28.89D   W
Secure EnergySES6.83▼-3.06.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI42.71▼-0.231.16
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
HollyFrontier (HFC +2.9%)
Helmerich & Payne (HP +1.3%)
Baker Hughes (BHGE +0.9%)
Phillips 66 (PSX +0.8%)
Kinder Morgan (KMI +0.6%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Cimarex Energy (XEC -5.4%)
Occidental Petro (OXY -4.6%)
Halliburton (HAL -3.5%)
Ntl-Oilwell Varco (NOV -3.5%)
ConocoPhillips (COP -3.4%)
12-MO
LOWS
EOG Resources (EOG -2.7%)
Occidental Petro (OXY -4.6%)
Halliburton (HAL -3.5%)
Ntl-Oilwell Varco (NOV -3.5%)
Cimarex Energy (XEC -5.4%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM72.98▼-0.864.65
 
87.36D   W
ChevronCVX117.65▲0.3100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.47▲0.614.62
 
20.57D   W
Williams CoWMB27.85▲0.620.36
 
32.22D   W
ONEOKOKE65.25▲0.250.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP57.08▼-3.456.75
 
80.24D   W
EOG ResourcesEOG82.03▼-2.780.41
 
133.53D   W
Occidental PetroOXY47.43▼-4.647.00
 
87.67D   W
Anadarko PetroAPC69.83▼-1.140.40
 
76.70D   W
Pioneer Natural ResPXD141.50▼-2.2119.08
 
197.42D   W
SERVICES
SchlumbergerSLB34.94▼-2.234.46
 
70.47D   W
HalliburtonHAL21.19▼-3.520.98
 
49.49D   W
Baker HughesBHGE22.23▲0.920.09
 
35.68D   W
Ntl-Oilwell VarcoNOV20.58▼-3.520.14
 
49.08D   W
TechnipFMCFTI21.46▲0.318.20
 
33.60D   W
REFINERS
Marathon PetroMPC47.69▼-1.745.47
 
88.45D   W
Phillips 66PSX84.83▲0.878.44
 
123.97D   W
Valero EnergyVLO73.14▼-1.068.81
 
124.43D   W
HollyFrontierHFC40.83▲2.937.73
 
81.11D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A62.76▲0.555.04
 
71.85D   W
TotalTOT52.32▼-0.849.70
 
65.69D   W
BPBP41.04▼-0.836.28
 
47.57D   W
EniE30.92▼-1.529.75
 
39.16D   W
EquinorEQNR19.14▼-2.018.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • None.

DOWNGRADES

  • None.

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
• CHARTPACKS COURTESY STOCKCHARTS.COM (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
Oil prices rally on Thursday, giving energy stocks a much needed boost

Oil prices rally on Thursday, giving energy stocks a much needed boost

Oil prices catch a small bounce as equity markets surge higher

Oil prices catch a small bounce as equity markets surge higher