Oil prices post another day of losses on Thursday, dragging energy stocks lower

Oil prices post another day of losses on Thursday, dragging energy stocks lower

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Today's energy market action:

  • After rallying earlier in the week, oil prices posted a second consecutive day of losses on Thursday.

  • Brent declined 2.1%, while WTI gave back 1.4%.

  • Canadian Light and heavy crude prices fell in tandem with WTI, as their respective differentials were little changed for the day. 

  • Gasoline and heating oil also posted a 2% loss on Thursday.

Today's treasury, currency and equity markets action:

  • Yields on the US 10-year fell to a fresh 3-year low on Thursday, while yields on the 30-year breached 2% for the first time in history.

  • Despite the continued decline in bond yields, the US dollar index eked out another small gain, ending the day back above 98. The loonie was unchanged for the day.

  • Equity markets rallied slightly on Thursday, thanks the release of better-than-expected retail data south of the border, and news that China still hopes to reach "consensus" in its trade dispute with the US.

  • In New York, the NYSE and S&P 500 Index both rose about 3%, with gains led by the more defensive staples and utilities sectors. The SPX energy sector shed another 0.5% for the day.

  • In Toronto, the TSX dipped 0.2%, led lower by a 0.8% decline in energy stocks.

Today's notable energy news:

  • According to the Energy Information Administration, US natural gas production continues to rise, setting a new daily production record of 92.1 Bcf/day on August 5. Natural gas production has increased by 1.5 Bcf/day in just the past four months, primarily driven by gains in the Northeast region, which now accounts for more than one-third of all US gas production. Despite below-average inventories for this time of year, Henry Hub remains stuck near US$2.20/MMBtu, hovering near the lows of 2016.

  • After being offline for almost a month, ExxonMobil says production out of the Hibernia platform has now resumed, and is in the process of returning to normal operations. The platform, located 315 km offshore St. John's, NL, was shutdown in mid-July, after a mixture of oil and water was discharged from a storage cell in the gravity base.

  • According to the Financial Post, Koch Industries struck a deal last June to sell some of its oil sands holdings to Cavalier Energy, while allowing its other leases to expire. Financial terms of the deal were not disclosed. Koch says the sale reflects its "desire to prioritize other initiatives." Cavalier is a wholly-owned subsidiary of Paramount Resources. The company now holds an estimated 1.3 million acres of land in the oil sands.

  • The government of Papua New Guinea has begun discussions with Total to renegotiate the terms of its agreement for the Papua LNG project, signed by the previous government. Total was expected to make a final investment decision sometime next year, with operations anticipated to begin in 2024. The new PNG government calls the contract "disadvantageous" to the state. Papua LNG is jointly owned with Oil Search and ExxonMobil.

  • Equinor announced the start of production from its Mariner field, located in the UK North Sea. Mariner is Equinor's first operated field in the region, holding an estimated 3 billion barrels of oil. Production is expected to average 55,000 bbl/day this year, eventually ramping up to a peak rate of 70,000 bbl/day. Mariner is jointly owned with JX Nippon, Siccar Point and Dutch firm ONE-Dyas.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$58.23▼2.150.47
 
86.29
WTI$54.47▼1.442.53
 
76.41
SCO$56.01▼1.325.15
 
71.86
C5+$51.94▼1.437.04
 
68.87
CDN LT$51.52▼1.420.83
 
63.50
WCS$42.49▼1.612.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ AUG 15   █ AUG 8   █ AUG 1   █ JUL 25   (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
Tourmaline (TOU +1.4%)
Husky Energy (HSE +1.1%)
Enbridge (ENB +1%)
Cdn Natural Res (CNQ +0.6%)
TORC O&G (TOG +0.3%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Birchcliff Energy (BIR -9.1%)
Frontera Energy Co (FEC -5%)
Nuvista Energy (NVA -4.7%)
Shawcor (SCL -3.2%)
Kelt Exploration (KEL -2.9%)
12-MO
LOWS
Imperial Oil (IMO 0%)
Husky Energy (HSE +1.1%)
Tourmaline (TOU +1.4%)
Vermilion Energy (VET -0.9%)
Pason Systems (PSI +0.1%)
Enerflex (EFX -2.7%)
Mullen Group (MTL -1.6%)
Secure Energy (SES -1%)
ARC Resources (ARX -2.9%)
Birchcliff Energy (BIR -9.1%)
Baytex Energy (BTE -1.8%)
Ensign Energy Svcs (ESI -0.7%)
Freehold Royalties (FRU -2.3%)
Gran Tierra (GTE -1.7%)
Kelt Exploration (KEL -2.9%)
Nuvista Energy (NVA -4.7%)
Precision Drilling (PD -0.7%)
Peyto Exploration (PEY 0%)
TORC O&G (TOG +0.3%)
Whitecap Res (WCP -2.1%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU36.77▼-1.035.53
 
54.51D   W
Imperial OilIMO32.38▼0.032.09
 
44.69D   W
Husky EnergyHSE8.64▲1.18.48
 
22.99D   W
MIDSTREAM
EnbridgeENB44.07▲1.039.40
 
51.22D   W
TC EnergyTRP63.600.047.90
 
67.15D   W
Pembina PipelinePPL48.46▲0.339.15
 
50.65D   W
Inter PipelineIPL24.31▼-0.618.60
 
25.24D   W
Keyera KEY32.00▼-1.824.05
 
38.17D   W
Gibson EnergyGEI22.90▼-0.316.90
 
24.43D   W
LARGE CAP E&P
Cdn Natural ResCNQ31.11▲0.630.11
 
46.39D   W
Cenovus EnergyCVE10.88▼-1.58.74
 
14.26D   W
EncanaECA5.52▼-2.55.25
 
17.60D   W
TourmalineTOU12.72▲1.412.40
 
23.86D   W
Vermilion EnergyVET19.48▼-0.919.14
 
43.91D   W
SERVICES
Pason SystemsPSI16.42▲0.116.21
 
24.57D   W
EnerflexEFX12.86▼-2.712.77
 
20.38D   W
Mullen Group MTL8.84▼-1.68.65
 
16.93D   W
ShawcorSCL15.99▼-3.215.11
 
28.89D   W
Secure EnergySES6.00▼-1.05.94
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI42.44▲0.231.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Marathon Petro (MPC +1.7%)
Valero Energy (VLO +0.9%)
Cabot O&G (COG +0.9%)
Occidental Petro (OXY +0.6%)
Concho Res (CXO +0.6%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Baker Hughes (BHGE -5.9%)
Ntl-Oilwell Varco (NOV -2.5%)
Marathon Oil (MRO -2.3%)
Schlumberger (SLB -2.1%)
Devon Energy (DVN -1.9%)
12-MO
LOWS
EOG Resources (EOG -0.1%)
ConocoPhillips (COP -1.7%)
Schlumberger (SLB -2.1%)
Halliburton (HAL -0.4%)
Ntl-Oilwell Varco (NOV -2.5%)
Marathon Petro (MPC +1.7%)
Cimarex Energy (XEC +0.4%)
Apache (APA -0.8%)
Cabot O&G (COG +0.9%)
Helmerich & Payne (HP -0.7%)
Cimarex Energy (XEC +0.4%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM67.25▼-0.664.65
 
87.36D   W
ChevronCVX116.95▼-0.7100.22
 
127.60D   W
MIDSTREAM
Kinder MorganKMI19.88▲0.314.62
 
21.50D   W
Williams CoWMB22.92▼-0.820.36
 
31.05D   W
ONEOKOKE67.95▲0.450.26
 
72.38D   W
LARGE CAP E&P
ConocoPhillipsCOP50.91▼-1.750.59
 
80.24D   W
EOG ResourcesEOG74.94▼-0.173.95
 
133.53D   W
Occidental PetroOXY43.96▲0.643.08
 
83.35D   W
Pioneer Natural ResPXD123.01▲0.1114.79
 
189.78D   W
Hess CorpHES59.62▲0.435.59
 
74.81D   W
SERVICES
SchlumbergerSLB31.65▼-2.131.11
 
65.61D   W
HalliburtonHAL18.25▼-0.417.46
 
42.57D   W
Baker HughesBHGE20.71▼-5.920.09
 
34.49D   W
Ntl-Oilwell VarcoNOV18.28▼-2.518.05
 
47.46D   W
TechnipFMCFTI23.02▼-1.218.20
 
32.91D   W
REFINERS
Marathon PetroMPC45.40▲1.743.96
 
88.45D   W
Phillips 66PSX97.47▼-0.278.44
 
121.55D   W
Valero EnergyVLO76.72▲0.968.81
 
122.42D   W
HollyFrontierHFC43.86▼-1.037.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A55.09▼-0.654.78
 
70.09D   W
TotalTOT48.05▼-0.647.86
 
65.69D   W
BPBP36.05▼-0.635.73
 
47.16D   W
EniE28.84▼-0.928.56
 
39.16D   W
EquinorEQNR16.42▼-0.416.24
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Superior Plus (SPB.TO): Upgraded from Buy to Strong Buy at Industrial Alliance.

DOWNGRADES

  • Key Energy Services (KEG): Downgraded from Accumulate to Hold at Johnson Rice.

  • Mullen Group (MTL.TO): Downgraded from Outperform to Sector Perform at National Bank.

  • Pioneer Energy Services (KEG): Downgraded from Accumulate to Hold at Johnson Rice.

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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