Oil prices stumble for the third day in a row

Oil prices stumble for the third day in a row

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Today's energy market update:

  • Crude oil prices continue to unwind the Hurricane Barry trade, posting a third consecutive day of losses. Brent slid just over 1%, while WTI gave back 1.5%. 

  • Differentials on Canadian benchmarks were mixed after yesterday's August contract expiry. The discount on Canadian Light narrowed to less than US$4, tempering the day's losses to just 0.5%. The heavy oil discount widened by over US$3/bbl, sending WCS lower by almost 9%.

  • Gasoline and heating oil prices also moved lower on Wednesday, due in part to rising stockpiles south of the border.

Today's currency and equity market action:

  • The US dollar dipped 0.2%, as US bond yields also moved lower on Wednesday. The Canadian dollar rose 0.2%, recovering some of yesterday's losses.

  • In New York, the NYSE fell for a third day in a row, sliding another 0.6% on Wednesday. The S&P 500 Large Cap Index also fell 0.7%. Except for utilities stocks, most sectors moved lower, including a 1.2% decline in energy stocks.

  • In Toronto, the TSX fell 0.1%. Energy was once again the worst performing sector in Canada, falling 1.3% on Wednesday.

Today's notable energy news:

  • According to Statistics Canada, the national inflation rate fell from 2.4% to 2.0% in June, mainly due to lower energy prices. Gasoline prices declined over 9% while fuel oil prices fell 4.1%. Ex-energy, the Consumer Price Index (CPI) is up 2.6% on an annualized basis. 

  • According to the Energy Information Administration, Hurricane Barry dented Lower 48 production by 400,000 bbl/day last week. Total US crude inventories fell by 3.1 million barrels, split almost evenly between the Cushing storage hub and the West Coast. This marks the fifth consecutive week of drawdowns.

  • Kinder Morgan Canada says storage volumes at its Edmonton-area terminals were down 1.8 million barrels in the second quarter, down 8% from the same time last year. The company blames the declines on the province's curtailment program, and a narrowing of pricing differentials for Canadian crude. KML also says it has begun construction of two new distillate tanks its North Vancouver Wharves terminal, with a total storage capacity of 200,000 barrels. The tanks are expected to be placed into service by the middle of 2021.

  • Parent-company Kinder Morgan says construction of its 2 Bcf/day Gulf Coast Express Pipeline is "progressing well" and remains on track for an October start-up. The company also approved a 100,000 bbl/day South Texas connection on its Gray Oak Pipeline, which runs from the Permian Basin to the Houston Ship Channel. The connection is expected to begin service by the end of this year. KMI says it is investing over US$250 million to increase capacity and debottleneck its pipeline network across Texas to accommodate rising volumes out of the Permian Basin.

  • Enbridge delayed open season on its Mainline network by about one week. The company did not give a reason for the delay expect to say they are "working to accommodate" the needs of their customers. Enbridge also began construction work on its Line 5 tunnel this week, despite on-going court challenges in the state of Michigan.

  • Phillips 66 Partners boosted its dividend by one cent to US$0.855 per share, marking the 23rd consecutive quarterly increase since the company's IPO in 2013.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$63.66▼1.150.47
 
86.29
WTI$56.78▼1.542.53
 
76.41
SCO$58.78▲0.725.15
 
74.46
C5+$52.23▼2.637.04
 
70.58
CDN LT$53.03▼0.520.83
 
69.32
WCS$42.03▼8.712.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUL 17   █ JUL 10   █ JUL 3   █ JUN 26   (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
Birchcliff Energy (BIR +1.1%)
Enerflex (EFX +0.8%)
Pason Systems (PSI +0.7%)
Cenovus Energy (CVE +0.3%)
Enbridge (ENB +0.3%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Precision Drilling (PD -4.9%)
Encana (ECA -4%)
Nuvista Energy (NVA -3.7%)
Enerplus (ERF -3.4%)
Ensign Energy Svcs (ESI -3.3%)
12-MO
LOWS
Husky Energy (HSE -2.3%)
Encana (ECA -4%)
CES Energy (CEU -2.4%)
Precision Drilling (PD -4.9%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU40.98▼-0.735.53
 
55.47D   W
Imperial OilIMO36.50▼-1.433.52
 
44.69D   W
Husky EnergyHSE11.53▼-2.311.50
 
22.99D   W
MIDSTREAM
EnbridgeENB47.12▲0.339.40
 
51.22D   W
TC EnergyTRP65.56▼-0.447.90
 
67.15D   W
Pembina PipelinePPL49.56▼-0.839.15
 
50.65D   W
Inter PipelineIPL22.46▼-0.418.60
 
25.35D   W
Keyera KEY35.16▼-1.424.05
 
38.91D   W
Gibson EnergyGEI23.75▼-0.916.90
 
24.18D   W
LARGE CAP E&P
Cdn Natural ResCNQ34.75▼-1.430.11
 
47.93D   W
Cenovus EnergyCVE12.37▲0.38.74
 
14.26D   W
EncanaECA5.84▼-4.05.83
 
18.54D   W
TourmalineTOU17.32▼-1.115.39
 
25.79D   W
Vermilion EnergyVET27.59▼-2.226.54
 
48.38D   W
SERVICES
Pason SystemsPSI17.80▲0.717.18
 
24.57D   W
EnerflexEFX16.77▲0.813.56
 
20.38D   W
Mullen Group MTL9.28▼-1.39.20
 
16.93D   W
ShawcorSCL17.02▼-0.115.11
 
28.89D   W
Secure EnergySES6.88▼-2.06.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI43.990.031.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Occidental Petro (OXY +0.2%)
Anadarko Petro (APC +0.1%)
ConocoPhillips (COP +0.1%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Halliburton (HAL -4.8%)
Baker Hughes (BHGE -3.7%)
Cabot O&G (COG -3.7%)
Schlumberger (SLB -3.6%)
Cimarex Energy (XEC -3.4%)
12-MO
LOWS
Apache (APA -3%)
Cimarex Energy (XEC -3.4%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM75.48▼-0.664.65
 
87.36D   W
ChevronCVX124.14▼-0.5100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.59▼-1.514.62
 
21.50D   W
Williams CoWMB27.72▼-1.720.36
 
32.22D   W
ONEOKOKE69.64▼-0.750.26
 
71.43D   W
LARGE CAP E&P
ConocoPhillipsCOP59.78▲0.156.75
 
80.24D   W
EOG ResourcesEOG85.19▼-2.180.41
 
133.53D   W
Occidental PetroOXY51.18▲0.247.00
 
84.93D   W
Anadarko PetroAPC73.14▲0.140.40
 
76.23D   W
Pioneer Natural ResPXD136.34▼-2.7119.08
 
193.03D   W
SERVICES
SchlumbergerSLB38.63▼-3.634.46
 
68.43D   W
HalliburtonHAL21.78▼-4.820.98
 
45.50D   W
Baker HughesBHGE23.19▼-3.720.09
 
35.55D   W
Ntl-Oilwell VarcoNOV20.79▼-2.519.57
 
49.08D   W
TechnipFMCFTI24.78▼-1.418.20
 
33.60D   W
REFINERS
Marathon PetroMPC54.31▼-2.545.47
 
88.45D   W
Phillips 66PSX100.79▼-0.678.44
 
123.97D   W
Valero EnergyVLO83.24▼-1.268.81
 
122.42D   W
HollyFrontierHFC47.55▼-0.637.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A63.33▼-0.855.04
 
70.60D   W
TotalTOT54.63▼-1.749.70
 
65.69D   W
BPBP39.28▼-2.336.28
 
47.16D   W
EniE32.28▼-1.329.75
 
39.16D   W
EquinorEQNR18.95▼-1.818.91
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • ConocoPhillips (COP): Upgraded from Neutral to Buy at BofA.

  • PetroChina (PTR): Upgraded from Neutral to Outperform at Macquarie.

  • Smart Sand (SND): Upgraded from Neutral to Buy at B. Riley.

DOWNGRADES

  • Carrizo Oil & Gas (CRZO): Downgraded from Strong Buy to Market Perform at Raymond James.

  • CNOOC (CEO): Downgraded from Outperform to Neutral at Daiwa Capital Markets.

  • Shell Midstream Partners (SHLX): Downgraded from Neutral to Underperform at Mizuho.

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
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