Trump takes aim at China via Twitter, sinking energy stocks for the sixth week in a row

Trump takes aim at China via Twitter, sinking energy stocks for the sixth week in a row

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Today's energy market action:

  • A downbeat speech from the US fed chair and worsening US/China trade relations sank stocks and most commodities on Friday.

  • Brent declined 1%, but ended the week 1.2% higher. WTI sank over 2% on Friday, bringing this week's losses to 1.3%.

  • Canadian Light fell 1.5% for the day, but gained over 2% for the week. Western Canadian Select (WCS) declined another 3% on Friday. For the week, WCS posted its third consecutive week of declines, giving back 0.6%.

Today's notable US economic news:

  • Speaking at the Jackson Hole symposium this morning, Fed Chair Jerome Powell says the US economy faces "significant risks" from slowing global growth, raising the odds of another interest rate cut in mid-September.

  • China announced a new round of tariffs on US$75 billion worth of US goods beginning September 1 and December, including a 25% fee on American automobiles. The US Administration responded by raising tariffs on US$550 billion in Chinese imports over the next few months. President Trump took to Twitter and ordered all "great American companies ... to immediately start looking for an alternative to China," preferably moving production facilities to the US. 

Today's treasury, currency and equity market action:

  • US bond yields took a big hit on Friday, but the yield curve (10 vs 2-yr) was unchanged at 0.01%. The US dollar also moved sharply lower, giving back all of this week's gains. The loonie also moved lower on Friday, bringing this week's losses to 0.3%.

  • The NYSE sank over 2% for the day, posting a fourth consecutive week of losses. The S&P 500 also slid 2.6%, with sharp declines seen across all sectors. The TSX outperformed counterparts in New York, ending the day down just 1.3%, thanks to a good showing from gold stocks.

  • Energy was the worst performing sector on both side of the border, falling just over 3% on both the SPX/TSX, each marking the sixth consecutive week of declines.

Today's notable energy news:

  • According to Baker Hughes, US drillers took 16 oil rigs out of service this week, dropping the total to 754, almost 130 rigs less than the same time last year. Canada lost 6 oil rigs, leaving just 95 in service, almost half the same time last year.

  • TC Energy cleared another hurdle this week, after the Nebraska Supreme Court reaffirmed the approved routing for its Keystone XL project. Although all lingering lawsuits have now been resolved, the company has yet to provide an update on cost or schedule. Shipper commitments were scheduled to commence in March 2021, but that date was pushed back after the company missed this year's construction season.

  • Pembina Pipeline filed for a mixed shelf offering of up to $3 billion over the next 25 months, to help finance its dividend increase, takeover of Kinder Morgan Canada (KML) and purchase of the US segment of the Cochin pipeline. The companies also disclosed a $90 million termination fee, should the deal fall through.

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$59.34▼1.050.47
 
86.29
WTI$54.17▼2.142.53
 
76.41
SCO$54.47▼2.125.15
 
67.20
C5+$47.92▼2.937.04
 
68.87
CDN LT$50.67▼1.520.83
 
61.30
WCS$41.32▼2.812.59
 
56.30

CRUDE OIL FUTURES CURVES
BRENT
WTI
█ AUG 23   █ AUG 16   █ AUG 9   █ AUG 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
None
12-MO
HIGHS
None
TSX BEARISH INDICATORS
BOTTOM
5
Birchcliff Energy (BIR -9.4%)
Nuvista Energy (NVA -9.1%)
MEG Energy (MEG -8%)
Gran Tierra (GTE -6.4%)
Whitecap Res (WCP -5.9%)
12-MO
LOWS
Imperial Oil (IMO -2.6%)
Cdn Natural Res (CNQ -3.6%)
Vermilion Energy (VET -4.9%)
Pason Systems (PSI -2.5%)
Enerflex (EFX -2.7%)
Secure Energy (SES -3.4%)
ARC Resources (ARX -5%)
Baytex Energy (BTE -5.2%)
Freehold Royalties (FRU -4%)
Gran Tierra (GTE -6.4%)
Kelt Exploration (KEL -5.2%)
Nuvista Energy (NVA -9.1%)
Precision Drilling (PD -4.7%)
TORC O&G (TOG -4.7%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Suncor EnergySU37.04▼-1.935.53
 
54.51D   W
Imperial OilIMO31.62▼-2.631.51
 
44.69D   W
Husky EnergyHSE8.98▼-3.18.48
 
22.99D   W
MIDSTREAM
EnbridgeENB43.35▼-2.539.40
 
51.22D   W
TC EnergyTRP64.37▼-0.747.90
 
67.15D   W
Pembina PipelinePPL47.48▼-2.339.15
 
50.65D   W
Inter PipelineIPL24.25▼-0.918.60
 
25.08D   W
Keyera KEY31.98▼-2.024.05
 
38.17D   W
Gibson EnergyGEI22.81▼-2.016.90
 
24.43D   W
LARGE CAP E&P
Cdn Natural ResCNQ30.19▼-3.630.10
 
46.39D   W
Cenovus EnergyCVE11.03▼-3.38.74
 
14.26D   W
EncanaECA5.50▼-3.05.25
 
17.60D   W
TourmalineTOU12.55▼-3.712.40
 
23.86D   W
Vermilion EnergyVET18.76▼-4.918.72
 
43.91D   W
SERVICES
Pason SystemsPSI15.79▼-2.515.78
 
24.57D   W
EnerflexEFX12.13▼-2.711.96
 
20.38D   W
Mullen Group MTL8.83▼-3.28.65
 
16.93D   W
ShawcorSCL16.20▼-3.215.11
 
28.89D   W
Secure EnergySES5.65▼-3.45.60
 
9.44D   W
REFINING & MARKETING
Parkland FuelPKI41.11▼-3.331.59
 
47.45D   W
S&P 500 ENERGY STOCKS
SPX BULLISH INDICATORS
TOP 5
Cabot O&G (COG +0.1%)
12-MO
HIGHS
None
SPX BEARISH INDICATORS
BOTTOM
5
Hess Corp (HES -6.8%)
Devon Energy (DVN -5.9%)
Cimarex Energy (XEC -5.2%)
Helmerich & Payne (HP -5.2%)
Occidental Petro (OXY -5.2%)
12-MO
LOWS
EOG Resources (EOG -5.1%)
ConocoPhillips (COP -3.5%)
Occidental Petro (OXY -5.2%)
Helmerich & Payne (HP -5.2%)
COMPANY TICKER CLOSE %CHG L 52WK H CHART
INTEGRATED
Exxon MobilXOM67.49▼-3.064.65
 
87.36D   W
ChevronCVX115.18▼-2.2100.22
 
127.60D   W
MIDSTREAM
Kinder MorganKMI19.57▼-3.114.62
 
21.50D   W
Williams CoWMB22.88▼-3.120.36
 
30.53D   W
ONEOKOKE67.41▼-4.150.26
 
72.38D   W
LARGE CAP E&P
ConocoPhillipsCOP50.42▼-3.550.13
 
80.24D   W
EOG ResourcesEOG71.75▼-5.171.36
 
133.53D   W
Occidental PetroOXY42.37▼-5.242.17
 
83.35D   W
Pioneer Natural ResPXD120.65▼-4.3114.79
 
189.78D   W
Hess CorpHES59.56▼-6.835.59
 
74.81D   W
SERVICES
SchlumbergerSLB32.03▼-5.031.11
 
65.57D   W
HalliburtonHAL17.72▼-5.117.46
 
42.57D   W
Baker HughesBHGE20.88▼-2.620.09
 
34.49D   W
Ntl-Oilwell VarcoNOV18.71▼-3.218.05
 
47.46D   W
TechnipFMCFTI23.10▼-3.818.20
 
32.91D   W
REFINERS
Marathon PetroMPC45.76▼-2.443.96
 
88.45D   W
Phillips 66PSX95.18▼-3.378.44
 
121.55D   W
Valero EnergyVLO74.18▼-4.268.81
 
122.42D   W
HollyFrontierHFC43.63▼-4.337.73
 
76.56D   W
NYSE ADRs
COMPANY TICKER CLOSE %CHG L 52WK H CHART
Royal Dutch ShellRDS.A55.13▼-1.454.78
 
70.09D   W
TotalTOT48.12▼-1.747.70
 
65.69D   W
BPBP36.21▼-0.935.73
 
47.16D   W
EniE28.89▼-1.828.56
 
39.16D   W
EquinorEQNR16.63▼-2.716.24
 
28.93D   W
ANALYST RATINGS

UPGRADES

  • Crestwood Equity Partners (CEQP): Upgraded from Sector Perform to Outperform at RBC.

DOWNGRADES

  • SemGroup (SEMG): Downgraded from Outperform to Sector Perform at RBC.

  • Tellurian (TELL): Downgraded from Buy to Neutral at BofA.

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 slump lower, despite rally in equity markets

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