Energy stocks recover on Friday, but log fifth consecutive week of losses

Energy stocks recover on Friday, but log fifth consecutive week of losses

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Today's energy market action:

  • After two days of steep declines, energy markets ended the week on a high note, recovering some of this week's losses.

  • Brent and WTI both gained 0.7%, bringing this week's gains to 0.2% and 0.7%, respectively.

  • Gasoline prices also recovered 1.3% on Friday, trimming this week's losses to 1%. After four consecutive weeks of declines, Henry Hub gas prices also gained about 4% this week.

  • Results were less positive for Canadian benchmarks, due to yesterday's expiry of the September contract.

  • Canadian Light declined 3.9% for the day, as its discount to WTI has now  widened by US$2.40 to $5.35/bbl. For the week, the Canadian Light declined almost 5%.

  • Western Canadian Select (WCS) also fell 2.2% on Friday, as its discount to WTI widened by over US$1 to US$13.30/bbl. WCS prices were little changed for the week.

Today's currency market action:

  • Rumours of another massive ECB economic stimulus package gave traders a reason to be hopeful on Friday. The Euro dipped slightly on the news, bringing this week's losses to 1%, and ending Friday back below 111. 

  • After sliding to a 34-year low versus the US dollar, the British pound was this week's most improved currency, rising almost 1%.

  • The US dollar moved up 0.7% this week, while the loonie declined 0.4% from last Friday's close.

Today's equity market action:

  • Both the NYSE and S&P 500 Large Caps rallied 1.4% on Friday, reducing this week's losses to just over 1%. The TSX gained 0.8% for the day, but lost 1.2% for the week.

  • After two days of declines, Canadian energy stocks rose 1% on Friday, but still ended the week 3.5% lower. This is the fifth consecutive week of declines for the TSX energy sector, which has been falling steadily since mid-April.

  • The SPX energy basket also rose 1.2% on Friday, but ended the week down almost 4%, also a fifth consecutive week of losses.

Today's supply/demand update:

  • In this month's oil market report, OPEC cut its 2019 demand forecast by 40,000 bbl/day to 1.1 million bbl/day, leaving markets oversupplied by 200,000 bbl/day next year. The cartel stresses this current forecast assumes "trade-related issues do not escalate further." OPEC's current production quotas expire in March 2020.

  • OPEC also says it's members produced 29.6 million bbl/day in July, down 8% from June, still hovering near a 5-year low. Saudi output declined another 134,000 bbl/day to 9.7 million bbl/day, the lowest since March 2014. Angola, Iran and Venezuela also reported declines, offsetting gains out of Nigeria.

  • According to Baker Hughes, US drillers added 6 oil rigs this week, bringing the total number of rigs in service to 770. This is the first increase in almost two months. Canada added 7 oil rigs, for a total of 101, but lost 5 gas rigs, leaving 41 in service.

Today's other notable energy news:

  • Husky Energy has been cleared by provincial regulators to restart operation of two drill centres at its White Rose production platform, about 9 months after a spill forced it to cease operations. Last November, a faulty flowline connector came apart while the facility was being restarted, spilling about 50 litres of oil. The North Amethyst and South White Rose Extension drill centres are expected to bring production back up to about 28,0000 bbl/day (20,000 bbl/day net to Husky). White Rose is located 350 km off the coast of St. John's, NL, and is owned jointly with Suncor Energy.

  • Enbridge says it will resume partial service on parts of its Texas Eastern gas network in Kentucky later this month. The affected segments were taken offline two weeks ago after a blast that occurred in the state of Kentucky, killing one person and injuring six others. Portions of the network, including Lines 10, 15 and 25, are planned to be replaced, before the system can return to normal service. Enbridge says it is cooperating with the National Transportation Safety Board, and has yet to disclose the cause of the incident.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$58.64▲0.750.47
 
86.29
WTI$54.87▲0.742.53
 
76.41
SCO$54.12▼3.425.15
 
71.86
C5+$50.27▼3.237.04
 
68.87
CDN LT$49.52▼3.920.83
 
63.50
WCS$41.57▼2.212.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ AUG 16   █ AUG 9   █ AUG 2   █ JUL 26   (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
Crescent Point (CPG +7%)
Enerplus (ERF +5.2%)
Kelt Exploration (KEL +5.2%)
Birchcliff Energy (BIR +4.2%)
Baytex Energy (BTE +4.2%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Precision Drilling (PD -2%)
Freehold Royalties (FRU -1.9%)
Gran Tierra (GTE -1.7%)
MEG Energy (MEG -1.5%)
Ensign Energy Svcs (ESI -1%)
12-MO
LOWS
Ensign Energy Svcs (ESI -1%)
Freehold Royalties (FRU -1.9%)
Gran Tierra (GTE -1.7%)
Precision Drilling (PD -2%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU37.30▲1.435.53
 
54.51D   W
Imperial OilIMO32.66▲0.932.09
 
44.69D   W
Husky EnergyHSE8.77▲1.58.48
 
22.99D   W
MIDSTREAM
EnbridgeENB44.61▲1.239.40
 
51.22D   W
TC EnergyTRP64.23▲1.047.90
 
67.15D   W
Pembina PipelinePPL48.95▲1.039.15
 
50.65D   W
Inter PipelineIPL24.53▲0.918.60
 
25.24D   W
Keyera KEY32.28▲0.924.05
 
38.17D   W
Gibson EnergyGEI23.03▲0.616.90
 
24.43D   W
LARGE CAP E&P
Cdn Natural ResCNQ31.06▼-0.230.11
 
46.39D   W
Cenovus EnergyCVE10.85▼-0.38.74
 
14.26D   W
EncanaECA5.57▲0.95.25
 
17.60D   W
TourmalineTOU12.86▲1.112.40
 
23.86D   W
Vermilion EnergyVET19.90▲2.219.14
 
43.91D   W
SERVICES
Pason SystemsPSI16.37▼-0.316.21
 
24.57D   W
EnerflexEFX13.34▲3.712.77
 
20.38D   W
Mullen Group MTL8.95▲1.28.65
 
16.93D   W
ShawcorSCL16.15▲1.015.11
 
28.89D   W
Secure EnergySES6.09▲1.55.94
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI42.76▲0.831.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Cimarex Energy (XEC +6.5%)
Apache (APA +4.6%)
Devon Energy (DVN +4.3%)
Marathon Oil (MRO +3.7%)
Concho Res (CXO +3.4%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Chevron (CVX -1%)
12-MO
LOWS
None
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM68.30▲1.664.65
 
87.36D   W
ChevronCVX115.81▼-1.0100.22
 
127.60D   W
MIDSTREAM
Kinder MorganKMI20.13▲1.314.62
 
21.50D   W
Williams CoWMB23.28▲1.620.36
 
31.05D   W
ONEOKOKE69.30▲2.050.26
 
72.38D   W
LARGE CAP E&P
ConocoPhillipsCOP51.47▲1.150.59
 
80.24D   W
EOG ResourcesEOG75.92▲1.373.95
 
133.53D   W
Occidental PetroOXY44.57▲1.443.08
 
83.35D   W
Pioneer Natural ResPXD124.61▲1.3114.79
 
189.78D   W
Hess CorpHES59.82▲0.335.59
 
74.81D   W
SERVICES
SchlumbergerSLB32.72▲3.431.11
 
65.61D   W
HalliburtonHAL18.87▲3.417.46
 
42.57D   W
Baker HughesBHGE21.06▲1.820.09
 
34.49D   W
Ntl-Oilwell VarcoNOV18.64▲2.018.05
 
47.46D   W
TechnipFMCFTI23.76▲3.318.20
 
32.91D   W
REFINERS
Marathon PetroMPC46.22▲1.843.96
 
88.45D   W
Phillips 66PSX98.83▲1.578.44
 
121.55D   W
Valero EnergyVLO78.12▲1.868.81
 
122.42D   W
HollyFrontierHFC44.35▲1.137.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A55.56▲0.854.78
 
70.09D   W
TotalTOT48.01▼-0.147.70
 
65.69D   W
BPBP36.29▲0.735.73
 
47.16D   W
EniE28.97▲0.528.56
 
39.16D   W
EquinorEQNR16.55▲0.716.24
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • None.

DOWNGRADES

  • Whiting Petroleum (WLL): Downgraded from Outperform to Market Perform at Wells Fargo.

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 outperforms on Monday, giving equity markets a much needed boost

Energy outperforms on Monday, giving equity markets a much needed boost

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