Oil prices move up sharply, as production comes offline in the Gulf of Mexico

Oil prices move up sharply, as production comes offline in the Gulf of Mexico

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Today's energy market update:

  • Production outages in the Gulf of Mexico and much bigger than expected drawdown in US crude stockpiles helped give oil prices a lift on Wednesday.

  • Brent, WTI, Canadian Light all gained about 4.5%, while WCS rose almost 6%. Discounts to WTI narrowed slightly.

  • Gasoline and heating oil prices also rose over 4% on Wednesday.

  • Producers in the US Gulf of Mexico began evacuating platforms and shutting in production on Wednesday, ahead of a tropical storm which is expected to roll through on Thursday. ExxonMobil, BP, Royal Dutch Shell and Anadarko have begun evacuating non-essential staff, taking over 600,000 bbl/day of crude and 500 MMcf/day of natural gas offline. The storm is expected to reach hurricane status by the weekend, bringing heavy rains and flooding into southeastern Louisiana. 

  • The Energy Information Administration reported a 9.5 million barrel drop in crude stockpiles south of the border, mostly seen in the Gulf Coast. Production ticked up slightly to 12.3 million bbl/day, while US imports of Canadian crude surged to almost 4 million bbl/day.

Today's currency and equity market action:

  • According to minutes from the June FOMC meeting, US policy makers are poised to reverse course and begin cutting interest rates, citing a weakening economic outlook, tepid inflation and worries over global trade. The news steepened the yield curve, sending the US dollar lower by 0.4%.

  • The Bank of Canada (BoC) held interest rates unchanged on Wednesday, despite data that points to an improving economy. The BoC expects GDP to expand at 2.3% in the second quarter, due in part to a major recovery in oil production, bringing full-year 2019 expansion to a feeble 1.3%. The loonie rose 0.4% for the day.

  • Markets in Toronto and New York posted modest gains on Wednesday. The NYSE rose 0.3%, while the NASDAQ gained 0.8%. The TSX eked out a 0.1% increase.

  • Energy was the best performing sector on both sides of the border, rising 1.4% on the SPX and 2.2% on the TSX.

Today's other notable energy news:

  • Enbridge has reduced minimum volume commitments on its Mainline from 6,000 bbl/day to just 2,200 bbl/day, in a bid to appease smaller producers. The company plans to commence open season in July, moving away from its current practice of monthly nominations. The new plan would take effect in 2021, with terms varying from 8 to 20 years.

  • The Dominican Republic is the latest country looking to get into the oil business, holding its first licensing round this week. The blocks being auctioned are both onshore and offshore, and have attracted interest from several international oil majors.

  • Total announced the divestiture of several non-core UK gas assets to Petrogas for US$635 million. The properties are located in the Eastern North Sea and were acquired during its purchase of Maersk Oil.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$67.01▲4.450.47
 
86.29
WTI$60.43▲4.542.53
 
76.41
SCO$61.29▲4.525.15
 
74.46
C5+$56.31▲4.837.04
 
71.40
CDN LT$56.03▲4.620.83
 
69.32
WCS$48.03▲5.912.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUL 10   █ JUL 3   █ JUN 26   █ JUN 19   (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
Crescent Point (CPG +9.3%)
Whitecap Res (WCP +7.3%)
Kelt Exploration (KEL +6.3%)
Gran Tierra (GTE +6.2%)
TORC O&G (TOG +6.2%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
None
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU42.40▲0.635.53
 
55.47D   W
Imperial OilIMO36.82▲0.133.52
 
44.91D   W
Husky EnergyHSE12.64▲1.412.18
 
22.99D   W
MIDSTREAM
EnbridgeENB48.06▲0.239.40
 
51.22D   W
TC EnergyTRP66.61▲1.547.90
 
66.93D   W
Pembina PipelinePPL49.96▲0.839.15
 
50.65D   W
Inter PipelineIPL22.20▲0.418.60
 
25.66D   W
Keyera KEY34.91▲1.824.05
 
38.91D   W
Gibson EnergyGEI23.92▲0.616.90
 
24.18D   W
LARGE CAP E&P
Cdn Natural ResCNQ36.15▲2.730.11
 
49.08D   W
Cenovus EnergyCVE12.26▲2.58.74
 
14.84D   W
EncanaECA6.54▲3.26.12
 
18.54D   W
TourmalineTOU16.78▲2.115.39
 
25.79D   W
Vermilion EnergyVET28.63▲0.826.54
 
49.67D   W
SERVICES
Pason SystemsPSI18.34▲0.317.18
 
24.57D   W
EnerflexEFX16.74▲1.113.56
 
20.38D   W
Mullen Group MTL9.53▲0.59.36
 
16.93D   W
ShawcorSCL17.45▲0.215.11
 
28.89D   W
Secure EnergySES7.33▲3.26.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI43.31▲3.231.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Noble Energy (NBL +3.8%)
TechnipFMC (FTI +2.9%)
Concho Res (CXO +2.7%)
Devon Energy (DVN +2.7%)
Marathon Oil (MRO +2.7%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Kinder Morgan (KMI -0.3%)
Cimarex Energy (XEC -0.1%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM77.51▲1.464.65
 
87.36D   W
ChevronCVX125.44▲1.7100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI21.18▼-0.314.62
 
21.50D   W
Williams CoWMB28.82▲0.320.36
 
32.22D   W
ONEOKOKE70.45▲0.950.26
 
71.99D   W
LARGE CAP E&P
ConocoPhillipsCOP61.21▲2.256.75
 
80.24D   W
EOG ResourcesEOG90.66▲1.780.41
 
133.53D   W
Occidental PetroOXY50.24▲1.347.00
 
86.60D   W
Anadarko PetroAPC71.16▲0.240.40
 
76.70D   W
Pioneer Natural ResPXD146.60▲2.3119.08
 
193.03D   W
SERVICES
SchlumbergerSLB40.62▲1.034.46
 
69.61D   W
HalliburtonHAL23.60▲0.120.98
 
47.03D   W
Baker HughesBHGE25.38▲1.520.09
 
35.55D   W
Ntl-Oilwell VarcoNOV22.09▲2.719.57
 
49.08D   W
TechnipFMCFTI25.26▲2.918.20
 
33.60D   W
REFINERS
Marathon PetroMPC54.98▲0.645.47
 
88.45D   W
Phillips 66PSX98.11▲0.478.44
 
123.97D   W
Valero EnergyVLO83.40▲1.468.81
 
122.42D   W
HollyFrontierHFC46.94▲1.337.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A65.24▲1.255.04
 
71.85D   W
TotalTOT56.30▲1.549.70
 
65.69D   W
BPBP41.22▲0.736.28
 
47.25D   W
EniE33.24▲1.829.75
 
39.16D   W
EquinorEQNR19.98▲1.318.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Core Laboratories (CLB): Upgraded from Neutral to Buy at BofA.

  • Total (TOT): Upgraded from Neutral to Outperform at Credit Suisse.

DOWNGRADES

  • BP (BP): Downgraded from Outperform to Neutral at Credit Suisse.

  • FTS International (FTSI): Downgraded from Buy to Neutral at BofA.

  • Superior Energy Services (SPN): Downgraded from Positive to Neutral at Susquehanna Bancshares.

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 SHOWN IN USD/BBL
• WCS = WESTERN CANADIAN SELECT; C5+ = EDMONTON CONDENSATE; SCO = SYNTHETIC CRUDE
• FUTURES CURVES REFLECT 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 and gas prices retreat, despite mounting outages in the Gulf of Mexico

Oil and gas prices retreat, despite mounting outages in the Gulf of Mexico

North American benchmarks post fourth day of gains, on expectations of further drawdowns in US crude stockpiles

North American benchmarks post fourth day of gains, on expectations of further drawdowns in US crude stockpiles