Energy stocks dragged lower by falling stock markets, despite higher oil prices

Energy stocks dragged lower by falling stock markets, despite higher oil prices

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Today's energy market action:

  • Oil prices posted another day of gains on Tuesday, but energy stocks failed to go along for the ride.

  • Brent rose 0.5%, moving back above US$60/bbl. WTI and Canada's light oil benchmarks all rose a more modest 0.2%.

  • Western Canadian Select (WCS) was today's big winner, rising 1.6%, as its discount to WTI narrowed from US$13.30 to US$12.75 a barrel.

  • Gasoline and heating oil prices also moved up over 1% on Tuesday.

  • According to the American Petroleum Institute, US crude stockpiles are estimated to have fallen by 3.5 million barrels last week. Official numbers from the Energy Information Administration are due to be released Wednesday morning.

Today's treasury, currency and equity market action:

  • Bond yields retreated on Tuesday, reversing most of Monday's gains. Minutes from last month's FOMC meeting are due to be released on Wednesday afternoon. Currency markets were little moved for the day.

  • Equity markets in New York pulled back for the first time in four trading days, with both the NYSE and NASDAQ posting a 0.7% loss. The S&P 500 declined 0.8%, with all sectors ending the day lower. SPX energy stocks slid 1% for the day, with all subsectors posting losses on Tuesday.

  • In Toronto, the TSX fell 0.6%, dragged lower by a 1.3% decline in the energy space. Declines were also seen across all energy subsectors.

Today's notable energy news:

  • Due to ongoing pipeline delays, Alberta's UCP government says it plans to extend its curtailment program through the end of 2020. The first 20,000 bbl/day of output has now been excluded, lifting October's production quotas by about 25,000 bbl/day. The government says out of the province's 300 oil producers, only 16 companies are affected.

  • Bankrupt junior producer Connacher Oil and Gas says production in the first half of 2019 fell 15% y/y to 10,780 bbl/day, primarily due to natural declines. Connacher has been under creditor protection since the spring of 2016. The company's main asset is the Great Divide SAGD facility near Fort McMurray.

  • US Secretary of State Mike Pompeo says sanctions on Iran has taken 2.7 million bbl/day of crude off world oil markets. Iran exported just 100,000 bbl/day in July, helping OPEC meet its curtailment quotas.

  • A consortium led by China National Petroleum Corporation (CNPC) made a new oil discovery in South Sudan, estimated to hold more than 300 million barrels of recoverable oil. The country currently produces 185,000 bbl/day, and hopes to raise output to 200,000 bbl/day next year.

  • Equinor and its partners, OMV and Petoro, also made a new discovery in the Barents Sea, estimated to hold as much as 65 million barrels of oil. The company also closed on its recent acquisition of a 22.5% stake in Caesar Tongo, located in the US Gulf of Mexico, boosting its interest to 46%. Caesar Tongo is owned jointly with Chevron and operator Anadarko Petroleum.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$60.03▲0.550.47
 
86.29
WTI$56.34▲0.242.53
 
76.41
SCO$55.64▲0.325.15
 
68.89
C5+$51.29▼0.037.04
 
68.87
CDN LT$50.99▲0.320.83
 
61.30
WCS$43.59▲1.612.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ AUG 20   █ AUG 13   █ AUG 6   █ JUL 30   (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
Birchcliff Energy (BIR +6.3%)
Peyto Exploration (PEY +3.8%)
Tourmaline (TOU +2.8%)
Crescent Point (CPG +2%)
TORC O&G (TOG +1.7%)
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Precision Drilling (PD -5.9%)
Ensign Energy Svcs (ESI -3.3%)
Kelt Exploration (KEL -2.7%)
Cdn Natural Res (CNQ -2.5%)
Gran Tierra (GTE -2.3%)
12-MO
LOWS
Gran Tierra (GTE -2.3%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU37.46▼-1.635.53
 
54.51D   W
Imperial OilIMO32.64▼-1.532.09
 
44.69D   W
Husky EnergyHSE9.24▲0.28.48
 
22.99D   W
MIDSTREAM
EnbridgeENB44.41▼-1.339.40
 
51.22D   W
TC EnergyTRP64.12▼-1.047.90
 
67.15D   W
Pembina PipelinePPL49.27▼-0.839.15
 
50.65D   W
Inter PipelineIPL24.86▲0.418.60
 
25.24D   W
Keyera KEY32.63▼-0.424.05
 
38.17D   W
Gibson EnergyGEI23.43▼-0.416.90
 
24.43D   W
LARGE CAP E&P
Cdn Natural ResCNQ30.86▼-2.530.11
 
46.39D   W
Cenovus EnergyCVE10.95▼-0.58.74
 
14.26D   W
EncanaECA5.85▼-0.95.25
 
17.60D   W
TourmalineTOU13.40▲2.812.40
 
23.86D   W
Vermilion EnergyVET19.99▼-2.019.14
 
43.91D   W
SERVICES
Pason SystemsPSI16.46▼-0.816.21
 
24.57D   W
EnerflexEFX13.19▼-0.912.77
 
20.38D   W
Mullen Group MTL9.25▲1.08.65
 
16.93D   W
ShawcorSCL16.58▲0.715.11
 
28.89D   W
Secure EnergySES6.06▼-1.95.94
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI42.90▼-0.731.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Cabot O&G (COG +0.4%)
Devon Energy (DVN +0.4%)
ONEOK (OKE +0.2%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Cimarex Energy (XEC -3.3%)
ConocoPhillips (COP -2.3%)
Marathon Petro (MPC -2.3%)
Ntl-Oilwell Varco (NOV -2.2%)
Helmerich & Payne (HP -2.2%)
12-MO
LOWS
Helmerich & Payne (HP -2.2%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM69.03▼-0.664.65
 
87.36D   W
ChevronCVX116.13▼-1.0100.22
 
127.60D   W
MIDSTREAM
Kinder MorganKMI20.14▼-1.414.62
 
21.50D   W
Williams CoWMB23.53▼-0.120.36
 
31.05D   W
ONEOKOKE71.06▲0.250.26
 
72.38D   W
LARGE CAP E&P
ConocoPhillipsCOP52.71▼-2.350.59
 
80.24D   W
EOG ResourcesEOG76.69▼-1.473.95
 
133.53D   W
Occidental PetroOXY45.26▼-0.743.08
 
83.35D   W
Pioneer Natural ResPXD126.60▼-1.4114.79
 
189.78D   W
Hess CorpHES62.60▼-0.935.59
 
74.81D   W
SERVICES
SchlumbergerSLB33.90▼-0.531.11
 
65.61D   W
HalliburtonHAL19.06▼-1.417.46
 
42.57D   W
Baker HughesBHGE21.11▼-1.520.09
 
34.49D   W
Ntl-Oilwell VarcoNOV18.88▼-2.218.05
 
47.46D   W
TechnipFMCFTI23.99▼-1.318.20
 
32.91D   W
REFINERS
Marathon PetroMPC46.72▼-2.343.96
 
88.45D   W
Phillips 66PSX98.68▼-0.178.44
 
121.55D   W
Valero EnergyVLO78.01▼-2.268.81
 
122.42D   W
HollyFrontierHFC45.80▼-0.237.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A55.66▼-0.854.78
 
70.09D   W
TotalTOT48.57▼-0.747.70
 
65.69D   W
BPBP36.45▼-1.135.73
 
47.16D   W
EniE29.19▼-0.728.56
 
39.16D   W
EquinorEQNR16.65▼-0.416.24
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • C&J Energy Services (CJ): Upgraded from Hold to Buy at Jefferies Financial.

DOWNGRADES

  • BP Midstream Partners (BPMP): Downgraded from Overweight to Neutral at JPMorgan.

  • Shell Midstream Partners (SHLX): Downgraded from Neutral to Underweight at JPMorgan.

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 stocks move higher on Wednesday, erasing Tuesday's losses

Energy stocks move higher on Wednesday, erasing Tuesday's losses

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

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