Oil prices move higher on hopes for major drawdown in crude stockpiles

Oil prices move higher on hopes for major drawdown in crude stockpiles

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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%.

  • In Toronto, the TSX moved up 0.3%. Energy outperformed broader markets, rising 0.6% for the day.

  • 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.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$63.83▲0.950.47
 
86.29
WTI$56.77▲1.042.53
 
76.41
SCO$58.77▲0.925.15
 
71.86
C5+$52.52▲1.137.04
 
69.63
CDN LT$53.32▲1.420.83
 
66.02
WCS$42.52▲2.912.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ JUL 23   █ JUL 16   █ JUL 9   █ JUL 2   (USD/BBL)
MARKET OVERVIEW
MARKETS
CURRENCIES & YIELDS
     TSX SECTORS
52WK Δ
     SPX SECTORS
52WK Δ
ENERGY SECTORS

TSX ENERGY SUB-SECTORS

SPX ENERGY SUB-SECTORS
TSX ENERGY STOCKS
TSX BULLISH INDICATORS
TOP 5
Gran Tierra (GTE +2.4%)
Crescent Point (CPG +2.2%)
ARC Resources (ARX +1.4%)
CES Energy (CEU +1.4%)
Shawcor (SCL +1.3%)
12-MO
HIGHS
Gibson Energy (GEI -0.6%)
TSX BEARISH INDICATORS
BOTTOM
5
Birchcliff Energy (BIR -3%)
Altagas (ALA -1.5%)
TORC O&G (TOG -1%)
Kelt Exploration (KEL -0.8%)
Enbridge (ENB -0.6%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU40.74▼-0.235.53
 
55.47D   W
Imperial OilIMO37.14▲0.833.52
 
44.69D   W
Husky EnergyHSE11.35▼-0.311.05
 
22.99D   W
MIDSTREAM
EnbridgeENB46.54▼-0.639.40
 
51.22D   W
TC EnergyTRP66.14▼-0.547.90
 
67.15D   W
Pembina PipelinePPL49.84▼-0.439.15
 
50.65D   W
Inter PipelineIPL22.67▲0.418.60
 
25.35D   W
Keyera KEY34.92▼-0.324.05
 
38.91D   W
Gibson EnergyGEI24.10▼-0.616.90
 
24.43D   W
LARGE CAP E&P
Cdn Natural ResCNQ34.39▲0.930.11
 
47.93D   W
Cenovus EnergyCVE12.67▲1.28.74
 
14.26D   W
EncanaECA6.11▲1.25.63
 
18.54D   W
TourmalineTOU17.42▲0.915.39
 
25.79D   W
Vermilion EnergyVET26.24▲0.525.70
 
47.98D   W
SERVICES
Pason SystemsPSI18.10▲0.117.18
 
24.57D   W
EnerflexEFX17.08▲0.714.17
 
20.38D   W
Mullen Group MTL9.42▲0.39.15
 
16.93D   W
ShawcorSCL17.40▲1.315.11
 
28.89D   W
Secure EnergySES6.99▲0.36.25
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI43.61▲0.131.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Ntl-Oilwell Varco (NOV +2.8%)
TechnipFMC (FTI +2.2%)
Apache (APA +1.9%)
Cimarex Energy (XEC +1.5%)
Noble Energy (NBL +1.4%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Occidental Petro (OXY -1.4%)
Helmerich & Payne (HP -1.2%)
Williams Co (WMB -1.1%)
ONEOK (OKE -0.9%)
Kinder Morgan (KMI -0.9%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM75.37▲0.464.65
 
87.36D   W
ChevronCVX125.82▲0.4100.22
 
128.55D   W
MIDSTREAM
Kinder MorganKMI20.59▼-0.914.62
 
21.50D   W
Williams CoWMB27.31▼-1.120.36
 
32.22D   W
ONEOKOKE68.51▼-0.950.26
 
71.43D   W
LARGE CAP E&P
ConocoPhillipsCOP60.28▼-0.356.75
 
80.24D   W
EOG ResourcesEOG87.59▲0.480.41
 
133.53D   W
Occidental PetroOXY51.80▼-1.447.00
 
84.93D   W
Anadarko PetroAPC73.62▼0.040.40
 
76.23D   W
Pioneer Natural ResPXD139.97▲1.2119.08
 
193.03D   W
SERVICES
SchlumbergerSLB39.75▲0.734.46
 
68.30D   W
HalliburtonHAL23.84▲0.320.98
 
43.05D   W
Baker HughesBHGE24.31▲1.420.09
 
35.55D   W
Ntl-Oilwell VarcoNOV21.84▲2.819.57
 
49.08D   W
TechnipFMCFTI26.16▲2.218.20
 
33.60D   W
REFINERS
Marathon PetroMPC55.71▲0.945.47
 
88.45D   W
Phillips 66PSX102.32▼-0.278.44
 
123.97D   W
Valero EnergyVLO84.77▲0.568.81
 
122.42D   W
HollyFrontierHFC48.36▲0.337.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A63.79▼-0.255.04
 
70.60D   W
TotalTOT54.30▼-0.149.70
 
65.69D   W
BPBP39.47▲0.336.28
 
47.16D   W
EniE32.10▲0.329.75
 
39.16D   W
EquinorEQNR19.05▼-0.118.65
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Murphy Oil (MUR): Upgraded from Neutral to Buy at Goldman Sachs.

  • SemGroup (SEMG): Upgraded from Neutral to Buy at Citigroup.

DOWNGRADES

  • None.

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 prices move lower on Wednesday, despite bullish US inventory report

Oil prices move lower on Wednesday, despite bullish US inventory report

Oil prices and energy stocks post a second consecutive day of gains

Oil prices and energy stocks post a second consecutive day of gains