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

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Today's energy market update:

  • After yesterday's big run-up, oil prices took a breather on Thursday, pulling back slightly for the day. Brent slipped 0.7% while WTI declined 0.4%. Canadian light and heavy crude also fell 0.4%, as differentials to WTI were little changed.

  • Heating oil and gasoline also retreated about 0.7%. Despite the onset of hot summer weather and production outages in the Gulf of Mexico, Henry Hub fell 1.5%, wiping out all of yesterday's gains.

Today's currency and equity market action:

  • Slightly stronger than expected US inflation data sent bond yields higher on Thursday. Despite the move, the US dollar was unchanged for the day. The loonie moved up another 0.1%.

  • North American markets were mixed on Thursday. The NYSE posted a 0.2% gain, the NASDAQ fell 0.1%, while the TSX declined 0.2%. The S&P 500 rose 0.2%, with most sectors posting gains for the day.

  • Energy stocks were little changed in Toronto, but up 0.2% on the SPX. Canadian energy services stocks were the worst performing subsector, while US refiners posted the biggest gains.

Today's supply/demand update:

  • Tropical Storm Barry has now taken over a million bbl/day offline in the Gulf of Mexico (GoM), as the storm intensifies on its way to Louisiana. Phillips 66 shutdown its 253,600 bbl/day Alliance Refinery, located just south of New Orleans, after the region was put under a mandatory evacuation order. As of noon Thursday, 53% of GoM oil production and 45% of natural gas output has been taken offline.

  • In its latest Monthly Oil Market report, OPEC says its production fell another 68,000 bbl/day last month, to an average of 29.83 million bbl/day. OPEC cut its 2019 non-OPEC oil supply forecast to 64.4 million bbl/day, due to downward revisions for Russia, Brazil and Norway. Non-OPEC growth is expected to rebound to 66.9 million bbl/day next year, due in part to new pipeline construction in North America, and higher production out of Brazil and Norway.

  • As a result, OPEC now says its 14 members need to produce just 29.3 million bbl/day next year, 500,000 bbl/day less than the current output, and 1.34 million bbl/day less than the 2019 average.

Today's other notable energy news:

  • Tensions between Iran and the UK flared up again this week after three Iranian vessels tried to stop a BP-operated tanker from travelling through the Strait of Hormuz. The Iranian vessels were promptly scurried away by a British warship. The incident comes one week after the UK seized an Iranian tanker off the coast of Gibraltar for violating sanctions on Syria.

  • CES Energy Solutions was approved to buy back and cancel up to 18.6 million of its shares over the next 12 months, representing 7.5% of its public float.

  • Occidental Petroleum boosted its quarterly dividend by US$0.01 to $0.79 per share, a 17th consecutive year of dividend increases. CEO Vicki Hollub says the increase reflects the company's commitment to boost its dividend every year.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$66.52▼0.750.47
 
86.29
WTI$60.20▼0.442.53
 
76.41
SCO$60.93▼0.625.15
 
74.46
C5+$56.09▼0.437.04
 
71.40
CDN LT$55.80▼0.420.83
 
69.32
WCS$47.87▼0.312.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUL 11   █ JUL 4   █ JUN 27   █ JUN 20   (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 +3.9%)
Ensign Energy Svcs (ESI +2.2%)
Encana (ECA +1.7%)
Whitecap Res (WCP +1.1%)
PrairieSky (PSK +0.7%)
12-MO
HIGHS
TC Energy (TRP +0.3%)
TSX BEARISH INDICATORS
BOTTOM
5
TORC O&G (TOG -3.7%)
Enerplus (ERF -2.7%)
CES Energy (CEU -2.7%)
Nuvista Energy (NVA -1.9%)
Crescent Point (CPG -1.8%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU42.38▼-0.135.53
 
55.47D   W
Imperial OilIMO37.04▲0.633.52
 
44.91D   W
Husky EnergyHSE12.68▲0.312.18
 
22.99D   W
MIDSTREAM
EnbridgeENB48.11▲0.139.40
 
51.22D   W
TC EnergyTRP66.81▲0.347.90
 
67.15D   W
Pembina PipelinePPL50.21▲0.539.15
 
50.65D   W
Inter PipelineIPL22.21▲0.118.60
 
25.66D   W
Keyera KEY35.10▲0.524.05
 
38.91D   W
Gibson EnergyGEI23.82▼-0.416.90
 
24.18D   W
LARGE CAP E&P
Cdn Natural ResCNQ36.04▼-0.330.11
 
48.73D   W
Cenovus EnergyCVE12.31▲0.48.74
 
14.44D   W
EncanaECA6.65▲1.76.12
 
18.54D   W
TourmalineTOU16.77▼-0.115.39
 
25.79D   W
Vermilion EnergyVET28.35▼-1.026.54
 
49.67D   W
SERVICES
Pason SystemsPSI18.23▼-0.617.18
 
24.57D   W
EnerflexEFX16.59▼-0.913.56
 
20.38D   W
Mullen Group MTL9.40▼-1.49.36
 
16.93D   W
ShawcorSCL17.28▼-1.015.11
 
28.89D   W
Secure EnergySES7.20▼-1.86.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI43.11▼-0.531.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
HollyFrontier (HFC +2.6%)
Phillips 66 (PSX +1.5%)
Valero Energy (VLO +1.2%)
Anadarko Petro (APC +1.2%)
TechnipFMC (FTI +1.2%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Cimarex Energy (XEC -3.8%)
Apache (APA -2.7%)
Marathon Oil (MRO -1.8%)
Pioneer Natural Res (PXD -1.2%)
Hess Corp (HES -1.1%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM77.57▲0.164.65
 
87.36D   W
ChevronCVX125.43▼0.0100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI21.27▲0.514.62
 
21.50D   W
Williams CoWMB28.71▼-0.420.36
 
32.22D   W
ONEOKOKE71.06▲0.950.26
 
71.71D   W
LARGE CAP E&P
ConocoPhillipsCOP61.46▲0.456.75
 
80.24D   W
EOG ResourcesEOG90.84▲0.280.41
 
133.53D   W
Occidental PetroOXY50.44▲0.447.00
 
85.23D   W
Anadarko PetroAPC71.98▲1.240.40
 
76.23D   W
Pioneer Natural ResPXD144.86▼-1.2119.08
 
193.03D   W
SERVICES
SchlumbergerSLB40.97▲0.934.46
 
69.28D   W
HalliburtonHAL23.85▲1.120.98
 
45.93D   W
Baker HughesBHGE25.24▼-0.620.09
 
35.55D   W
Ntl-Oilwell VarcoNOV22.02▼-0.319.57
 
49.08D   W
TechnipFMCFTI25.55▲1.218.20
 
33.60D   W
REFINERS
Marathon PetroMPC55.44▲0.845.47
 
88.45D   W
Phillips 66PSX99.59▲1.578.44
 
123.97D   W
Valero EnergyVLO84.43▲1.268.81
 
122.42D   W
HollyFrontierHFC48.15▲2.637.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A65.38▲0.255.04
 
70.60D   W
TotalTOT56.43▲0.249.70
 
65.69D   W
BPBP41.28▲0.236.28
 
47.16D   W
EniE33.42▲0.529.75
 
39.16D   W
EquinorEQNR20.44▲2.318.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • None.

DOWNGRADES

  • Bonterra Energy (BNE.TO): Downgraded from Strong Buy to Outperform at Raymond James.

  • Continental Resources (CLR): Downgraded from Outperform to Market Perform at BMO.

  • PDC Energy (PDCE): Downgraded from Outperform to Market Perform at BMO.

  • Cimarex Energy (XEC): Downgraded from Outperform to Market Perform at BMO.

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
Energy markets little moved on Friday, but post solid gains for the week

Energy markets little moved on Friday, but post solid gains for the week

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