Oil prices move higher on hopes for major drawdown in crude stockpiles
Today's energy market action:
Oil prices logged a third consecutive day of gains, on expectations for another major decline in US crude stockpiles.
Light oil benchmarks, including Brent, WTI, Edmonton Condensate and Synthetic Crude all rose about 1%.
Canadian Light rose 1.4%, as its discount to WTI narrowed to less than US$3.50 a barrel. Western Canadian Select (WCS) rose almost 3% as the heavy oil discount also narrowed from about US$15 to US$14.25.
Gasoline and heating oil prices also moved higher on Tuesday.
Today's currency and equity market update:
The US dollar moved up 0.5%, sinking most other global currencies, including the loonie, which declined 0.1%.
After a soft start to the week, equity markets mostly moved higher on Tuesday. The NYSE and S&P 500 both gained almost 0.7%. Except for utility stocks, all other sectors ended the day in the positive, including energy, which rose 0.3%.
Except for midstream stocks, most other energy subsectors moved higher on both sides of the border.
Today's notable energy news:
The American Petroleum Institute is forecasting a drawdown of 11 million barrels in crude stockpiles for last week. Official numbers from the Energy Information Administration are due to be released Wednesday morning.
Calgary-based Pipestone Energy announced the sale of its Pipestone Battery East facility to Tidewater Midstream for $30 million. The facility has planned a raw gas compression capacity of 30 MMcf/day and condensate handling capacity of 5,400 bbl/day. The funds include $14 million in cash up front, and $16 million to complete design and construction of the facility, to be executed over the next 12 to 18 months. Pipestone has also agreed to a 10-year integrated take-or-pay processing agreement.
TechnipFMC announced a major EPC contract by Novatek and its partners for the Arctic LNG 2 project, located in West Siberia. Arctic LNG 2 consists of three LNG trains, each with a liquefaction capacity of 6.6 million t/yr. The contract is said to be worth over US$1 billion.
American Midstream Partners closed on its previously announced merger with affiliates of ArcLight Energy Partners, and delisted its stock from the NYSE on Tuesday.
|Suncor Energy||SU||40.74||▼-0.2||35.53||55.47||D W|
|Imperial Oil||IMO||37.14||▲0.8||33.52||44.69||D W|
|Husky Energy||HSE||11.35||▼-0.3||11.05||22.99||D W|
|TC Energy||TRP||66.14||▼-0.5||47.90||67.15||D W|
|Pembina Pipeline||PPL||49.84||▼-0.4||39.15||50.65||D W|
|Inter Pipeline||IPL||22.67||▲0.4||18.60||25.35||D W|
|Gibson Energy||GEI||24.10||▼-0.6||16.90||24.43||D W|
|LARGE CAP E&P|
|Cdn Natural Res||CNQ||34.39||▲0.9||30.11||47.93||D W|
|Cenovus Energy||CVE||12.67||▲1.2||8.74||14.26||D W|
|Vermilion Energy||VET||26.24||▲0.5||25.70||47.98||D W|
|Pason Systems||PSI||18.10||▲0.1||17.18||24.57||D W|
|Mullen Group||MTL||9.42||▲0.3||9.15||16.93||D W|
|Secure Energy||SES||6.99||▲0.3||6.25||9.44||D W|
|REFINING & MARKETING|
|Parkland Fuel||PKI||43.61||▲0.1||31.59||47.45||D W|
|Exxon Mobil||XOM||75.37||▲0.4||64.65||87.36||D W|
|Kinder Morgan||KMI||20.59||▼-0.9||14.62||21.50||D W|
|Williams Co||WMB||27.31||▼-1.1||20.36||32.22||D W|
|LARGE CAP E&P|
|EOG Resources||EOG||87.59||▲0.4||80.41||133.53||D W|
|Occidental Petro||OXY||51.80||▼-1.4||47.00||84.93||D W|
|Anadarko Petro||APC||73.62||▼0.0||40.40||76.23||D W|
|Pioneer Natural Res||PXD||139.97||▲1.2||119.08||193.03||D W|
|Baker Hughes||BHGE||24.31||▲1.4||20.09||35.55||D W|
|Ntl-Oilwell Varco||NOV||21.84||▲2.8||19.57||49.08||D W|
|Marathon Petro||MPC||55.71||▲0.9||45.47||88.45||D W|
|Phillips 66||PSX||102.32||▼-0.2||78.44||123.97||D W|
|Valero Energy||VLO||84.77||▲0.5||68.81||122.42||D W|
Murphy Oil (MUR): Upgraded from Neutral to Buy at Goldman Sachs.
SemGroup (SEMG): Upgraded from Neutral to Buy at Citigroup.
UPDATED: DAILY (END-OF-DAY)
• 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
• 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)
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• ADR: AMERICAN DEPOSITORY RECEIPTS LISTED ON NYSE IN USD
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