WCS posts first weekly gain in 2 months, while TSX energy posts seventh week of losses

WCS posts first weekly gain in 2 months, while TSX energy posts seventh week of losses

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:

  • A softer US dollar and rising stock markets gave oil prices another lift on Friday.

  • Brent and WTI both moved higher for a second day in a row, rising almost 3% for the day. For the week, Brent lost 2% while WTI gained 1%.

  • Canadian benchmarks also gained about 3% for the day, as discounts to WTI were little changed. WCS recovered almost 6% for the week, the fist increase since mid-April. Canadian Light nudged up slightly, while Edmonton Condensate gained over 1% from the previous Friday's close.

  • Gasoline and heating oil both gained about 2% on Friday, paring losses for the week.

Today's currency and treasury market action:

  • The US added just 75,000 jobs in May, less than half what economists were expecting. The unemployment rate held steady at 3.6%. 

  • US bond yields moved lower on Friday, with 1-year bonds falling back below 2% for the first time since early 2018. The US Dollar Index slipped 0.5%, ending the week at about 96.50.

  • After a record April, Statistics Canada reported 27,700 new jobs created in May, led by Ontario and BC. A lower labour participation rate and rise in self-employment helped drop the unemployment rate from 5.7% to 5.4%, the lowest on record. The loonie rose 0.7% for the day and almost 2% for the week, ending Friday at 75.33 cents.

Today's equity market action:

  • Global markets mostly moved higher on Friday, shrugging off a host of new tariffs that could potentially take effect next week. The NYSE gained 0.7% while the NASDAQ rose 1.7%. The DJIA and S&P 500 both rose about 1%. Except for utilities stocks, most sectors ended the day higher. Despite dark clouds looming over the global economy, US markets all rose over 4% this week, with most exchanges and indices moving back above their 200-day moving averages.

  • The TSX was unchanged on Friday, bringing this week's gains to 1.2%.

  • In the energy space, TSX energy stocks gained 0.4% for the day, but ended the week 2.4% lower, the seventh consecutive week of declines. In contrast, the SPX energy sector gained 0.4% for the day, bringing weekly gains to over 4%.

Today's supply update:

  • According to Baker Hughes, US rig counts declined by 11, ending the week at 789, the lowest level in 16 months. Canada gained another 15 rigs, bringing the total to 59.

  • Speaking at a conference in Russia this week, Saudi Arabia’s energy minister said OPEC members were nearing an agreement to extend oil production cuts beyond June. However, talks with non-OPEC members (aka Russia) are ongoing.

Today's Canadian political news:

  • The Canadian Senate passed the Impact Assessment Act (Bill C-69), sending the bill back to the House of Commons with over 180 amendments. The changes include removing veto power from the federal environment minister, and putting more emphasis on economic impacts. The bill now sits with the federal Liberals, who can either accept the changes as-is, reject the bill completely, or send it back to the Senate for rework.

  • The Senate also rejected a recommendation to kill the Oil Tanker Moratorium Act (Bill C-48). The Transportation and Communications Senate Committee argued the tanker ban was highly biased against Alberta, lacked any clear evidence, and was especially divisive among West Coast Indigenous groups, who sit on both sides of the issue. The bill now goes into its third reading. Alberta Premier Jason Kenney has vowed to launch a constitutional challenge if the bill gets passed into law.

Today's notable pipeline news:

  • TC Energy (aka TransCanada) says it has missed the window to begin construction this year on its Keystone XL project. An injunction against the pipeline was lifted earlier this week in Montana, but the company is still awaiting a decision from the Nebraska Supreme Court over whether its state permits are valid. TC Energy has yet to provide a revise schedule or cost estimate for the 830,000 bbl/day project.

  • Enbridge has asked a Michigan court to rule on the validity of its deal with former Gov. Rick Snyder to build an underwater tunnel to house its Line 5 pipeline. Current state officials are questioning the constitutional legality of the deal reached with the former governor. Enbridge has just 2-years to replace the 55-year old line with new pipe.

Today's other notable energy news:

  • After being offline for almost 7 months, Husky Energy says it has resumed full production out its White Rose oil field, located 350 km off the coast of St. John's, NL. The SeaRose FSPO spilled about 1,500 barrels of oil/water/gas emulsion into the Atlantic last November, after a severe storm hit the region. The White Rose field is owned jointly with Suncor Energy.

  • CNOOC's Canadian subsidiary de-staffed 100 employees from its Calgary office this week, in a bid to ensure "long-term economic viability." CNOOC purchased Calgary-based Nexen in 2012 for $15 billion, and has since dramatically cut its Canadian headcount. The deal prompted a crackdown of takeovers by "foreign state-owned firms" within the energy patch.

  • BP has ended talks with Royal Dutch Shell to sell its Shearwater oil field in the UK North Sea. BP's 27.5% stake is worth an estimated US$250 million. Shell already owns a 28% stake, with the remaining 44.5% held by ExxonMobil.

  • Equinor was forced to evacuate 276 workers from its Statfjord platform in the Norwegian North Sea after it was struck by a supply vessel. The production platform was offline for maintenance at the time of the incident. No injuries were reported, and extent of the damage is still unknown.

  • After flip-flopping several times, Brazil's Supreme Court has cleared Petrobras to sell its TAG natural gas pipeline network to France's Engie for US$8.6 billion. The court ruled the state-run firm can follow through with its US$27 billion divestiture plan, at least for now.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$63.29▲2.650.47
 
86.29
WTI$53.99▲2.742.53
 
76.41
CDN LT$46.12▲3.120.83
 
69.32
C5+$48.17▲3.037.04
 
71.40
WCS$40.50▲3.312.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUN 7   █ MAY 31   █ MAY 24   █ MAY 17   (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
Cenovus Energy (CVE +3.9%)
TORC O&G (TOG +3%)
CES Energy (CEU +2.3%)
Freehold Royalties (FRU +1.9%)
Crescent Point (CPG +1.7%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Mullen Group (MTL -2.5%)
Encana (ECA -2.1%)
ARC Resources (ARX -1.7%)
Nuvista Energy (NVA -1.4%)
Birchcliff Energy (BIR -1%)
12-MO
LOWS
ARC Resources (ARX -1.7%)
Gran Tierra (GTE +1.2%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU40.52▼-0.335.53
 
55.47D   W
Imperial OilIMO36.43▼-0.133.52
 
44.91D   W
Husky EnergyHSE12.47▲0.412.27
 
22.99D   W
MIDSTREAM
EnbridgeENB47.14▼-0.439.40
 
51.22D   W
TC EnergyTRP66.63▲0.847.90
 
66.93D   W
Pembina PipelinePPL48.40▼-0.139.15
 
50.65D   W
Inter PipelineIPL20.42▲0.218.60
 
25.66D   W
Keyera KEY32.30▲0.224.05
 
38.91D   W
Gibson EnergyGEI22.20▼-1.016.90
 
23.75D   W
LARGE CAP E&P
Cdn Natural ResCNQ35.50▲1.130.11
 
49.08D   W
Cenovus EnergyCVE10.94▲3.98.74
 
14.84D   W
EncanaECA6.70▼-2.16.53
 
18.54D   W
TourmalineTOU16.98▲0.715.84
 
25.79D   W
Vermilion EnergyVET28.45▲0.126.67
 
49.67D   W
SERVICES
Pason SystemsPSI18.94▲0.117.18
 
24.57D   W
EnerflexEFX16.300.013.55
 
20.38D   W
Mullen Group MTL9.81▼-2.59.39
 
16.93D   W
ShawcorSCL17.26▼-0.415.11
 
28.89D   W
Secure EnergySES6.97▲1.06.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI42.20▼-0.631.16
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Hess Corp (HES +1.9%)
Baker Hughes (BHGE +1.6%)
Schlumberger (SLB +1.6%)
Helmerich & Payne (HP +1.4%)
ConocoPhillips (COP +1.3%)
12-MO
HIGHS
Kinder Morgan (KMI +1.3%)
SPX BEARISH INDICATORS
BOTTOM
5
Marathon Petro (MPC -2.3%)
Cimarex Energy (XEC -1%)
Occidental Petro (OXY -0.9%)
Diamondback (FANG -0.6%)
Noble Energy (NBL -0.2%)
12-MO
LOWS
Cimarex Energy (XEC -1%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM74.58▲0.464.65
 
87.36D   W
ChevronCVX121.48▲0.7100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI21.13▲1.314.62
 
21.25D   W
Williams CoWMB27.76▲0.820.36
 
32.22D   W
ONEOKOKE65.99▲0.050.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP58.96▲1.356.75
 
80.24D   W
EOG ResourcesEOG84.60▲0.480.41
 
133.53D   W
Occidental PetroOXY47.84▼-0.947.00
 
87.67D   W
Anadarko PetroAPC70.05▼-0.240.40
 
76.70D   W
Pioneer Natural ResPXD144.98▲0.7119.08
 
197.42D   W
SERVICES
SchlumbergerSLB35.60▲1.634.46
 
70.47D   W
HalliburtonHAL21.63▲0.420.98
 
49.49D   W
Baker HughesBHGE23.32▲1.620.09
 
35.68D   W
Ntl-Oilwell VarcoNOV20.85▲0.420.14
 
49.08D   W
TechnipFMCFTI22.58▲1.118.20
 
33.60D   W
REFINERS
Marathon PetroMPC46.99▼-2.345.47
 
88.45D   W
Phillips 66PSX85.52▲0.778.44
 
123.97D   W
Valero EnergyVLO74.73▲0.468.81
 
122.62D   W
HollyFrontierHFC40.09▲0.137.73
 
77.47D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A64.48▲1.455.04
 
71.85D   W
TotalTOT53.38▲1.449.70
 
65.69D   W
BPBP42.14▲1.336.28
 
47.57D   W
EniE31.63▲0.929.75
 
39.16D   W
EquinorEQNR19.90▲2.118.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Helix Energy Solutions Group (HLX): Upgraded from Outperform to Strong Buy at Raymond James.

  • Helmerich & Payne (HP): Upgraded from Neutral to Overweight at Piper Jaffray.

  • Matador Resources (MTDR): Upgraded from Neutral to Overweight at JPMorgan Chase.

  • Schlumberger (SLB): Upgraded from Hold to Buy at Stifel Nicolaus.

DOWNGRADES

  • Centennial Resource Development (CDEV): Downgraded from Overweight to Neutral at JPMorgan Chase.

  • Mammoth Energy Services (TUSK): Upgraded from Overweight to Equal Weight at Stephens.

  • MEG Energy (MEG.TO): Downgraded from Buy to Hold at Tudor Pickering.

  • Noble Midstream Partners (NBLX): Downgraded from Overweight to Neutral at JPMorgan Chase.

  • QEP Resources (QEP): Downgraded from Neutral to Underweight at JPMorgan Chase and from Buy to Hold at Tudor Pickering.

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 slide after Russia warns of excess global capacity

Oil prices slide after Russia warns of excess global capacity

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

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