Oil prices pulled lower as Chinese trade data disappoints

Oil prices pulled lower as Chinese trade data disappoints

Today's energy market summary:

  • Oil prices failed to hold on to Friday's gains on Monday, despite the lack of new news.

  • Both Brent and WTI sank about 3%, with Brent ending the session a hair below US$60 a barrel.

  • Following on last week's trend, the discount on Canadian Light and WCS narrowed slightly on Monday. The discount on Edmonton Condensate was unchanged.

  • Gasoline was the worst performing energy commodity, falling 4.5%. Heating oil also declined over 2%.

Today's equity market action:

  • Markets in Europe and Asia were down sharply overnight on the release of weak Chinese trade data. North American markets started the trading session sharply lower, but recovered most of their losses before the end of the trading day.

  • The S&P 500 and Dow Jones Industrial ended Monday unchanged, while the TSX declined 0.5%. 

  • Energy was the worst performing sector on both sides of the border, falling about 1.5% on both the TSX and S&P 500.

  • Energy services stocks continue to get slaughtered, with many names hitting new multi-year lows. Smaller cap Canadian producers and US independent refiners also posted major losses for the day.

  • The US dollar gained almost 1%, recovering all losses from last week. The pound sterling dropped to a 21-month low after the UK government announced a delay in the Brexit vote.

Today's notable energy news:

  • Pembina Pipeline (PPL.TO -0.5%) announced a 2019 capital budget of $1.6 billion, with more than half dedicated to its pipelines division. The company says it is currently in the process of commissioning over $750 million in new projects, which is expected to boost earnings next year.

  • Athabasca Oil Corp (ATH.TO -7.1%) announced the sale of its Leismer pipelines and Cheecham storage terminal to Enbridge (ENB.TO -0.8%) for $265 million. The company has secured priority service on the pipelines and tanks, with excess volumes contracted at discounted rates. Athabasca plans to spend about $100 million in capital next year, with production guidance set at 37,500 to 40,000 boe/day, weighted 88% liquids.

  • Crew Energy (CR.TO -5.6%) set a 2019 capital budget of $95 to $105 million, with production guidance set at 22,000 to 23,000 boe/day, weighted about 27% liquids.

  • ConocoPhillips (COP -1.1%) says it expects to generate plenty of free cash flow in 2019, as long as WTI stays above US$40 a barrel. Production is expected to grow about 5% to 1.3 million boe/day. Capital spending is expected at US$6.1 billion, about the same as this year, with 70% to be spent in the US and more than half on unconventional deposits in the US and Canada. The company expects to buy back about US$3 billion in COP shares next year and payout more than 30% of its operating cash flow to its shareholders.

  • ExxonMobil (XOM -1.5%) has sold a 10% stake in three offshore exploration blocks located in Mozambique to Qatar Petroleum. Exxon retains a 50% stake in the properties, jointly owned with Russia's Rosneft and Mozambique's national oil company ENH.

  • Royal Dutch Shell (RDS.A -0.8%) has agreed to expand its Shearwater gas hub in the UK North Sea, its seventh project sanctioned in the region this year. At peak rates, the facility is expected to produce about 400 MMcf/day of gas. Shearwater is jointly held with ExxonMobil (XOM -1.5%) and BP (BP -0.4%).

  • Brazil's environmental regulator has denied Total's (TOT -0.4%) application to drill in the Foz do Amazonas Basin for the fifth time, due to environmental concerns. The offshore basin is located near the mouth of the Amazon River and believed to contain as much as 14 billion barrels of proven reserves. The field is jointly owned with BP (BP -0.4%) and Petrobras (PBR -5.0%).

OIL PRICES - DAILY % CHANGE
WTI DIFFERENTIALS
STREAM CLOSE %CHG L 52WK H
BRENT$59.97▼2.858.71
 
86.29
WTI$51.00▼3.150.29
 
76.41
CDN LT$41.96▼2.020.83
 
69.32
C5+$42.26▼3.737.04
 
71.40
WCS$31.61▼3.212.59
 
56.21
CRUDE OIL FUTURES CURVES
BRENT
WTI
█ DEC 10   █ DEC 3   █ NOV 26   █ NOV 19   (USD/BBL)
MARKET OVERVIEW
MARKETS
CURRENCIES & YIELDS
    TSX SECTORS
52-WK
    SPX SECTORS
52-WK
ENERGY SECTORS

TSX ENERGY SUB-SECTORS

SPX ENERGY SUB-SECTORS
TSX ENERGY STOCKS
TSX BULLISH INDICATORS
TOP 5
  • Cdn Natural Res (CNQ +0.4%)
  • Gibson Energy (GEI +0.2%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • TSX BEARISH INDICATORS
    BOTTOM
    5
  • Trican Well Svc (TCW -7.7%)
  • Baytex Energy (BTE -6.9%)
  • Peyto Exploration (PEY -6.4%)
  • Precision Drilling (PD -6.1%)
  • Paramount Res (POU -5.8%)
  • 12-MO LOWS
  • Inter Pipeline (IPL -2%)
  • Keyera (KEY -0.5%)
  • Encana (ECA -2.3%)
  • Tourmaline (TOU -4.4%)
  • Vermilion Energy (VET -2.4%)
  • Shawcor (SCL -3.8%)
  • Mullen Group (MTL -2.6%)
  • PrairieSky (PSK -2.6%)
  • Seven Generations (VII -4.8%)
  • ARC Resources (ARX -5%)
  • Whitecap Res (WCP -5.2%)
  • Peyto Exploration (PEY -6.4%)
  • TORC O&G (TOG -5.3%)
  • Paramount Res (POU -5.8%)
  • Precision Drilling (PD -6.1%)
  • Kelt Exploration (KEL -4%)
  • Ensign Energy Svcs (ESI -4.4%)
  • Tamarack Valley (TVE -1.4%)
  • Advantage O&G (AAV -3.2%)
  • 10-YR LOWS
  • Tourmaline (TOU -4.4%)
  • PrairieSky (PSK -2.6%)
  • Seven Generations (VII -4.8%)
  • ARC Resources (ARX -5%)
  • Peyto Exploration (PEY -6.4%)
  • Precision Drilling (PD -6.1%)
  • Ensign Energy Svcs (ESI -4.4%)
  • Advantage O&G (AAV -3.2%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Suncor EnergySU41.75▼-0.340.49
     
    55.4727D   W
    Imperial OilIMO36.50▼-2.633.43
     
    44.9126D   W
    Husky EnergyHSE15.75▼-2.415.30
     
    22.9920D   W
    MIDSTREAM
    EnbridgeENB42.09▼-0.837.36
     
    51.0471D   W
    TransCanadaTRP52.75▼-1.548.92
     
    63.2969D   W
    Pembina PipelinePPL43.05▼-0.537.60
     
    47.8465D   W
    Inter PipelineIPL20.50▼-2.020.32
     
    27.8729D   W
    Keyera KEY27.69▼-0.527.27
     
    38.9120D   W
    Gibson EnergyGEI19.61▲0.215.68
     
    23.3284D   W
    LARGE CAP E&P
    Cdn Natural ResCNQ35.98▲0.432.08
     
    49.0837D   W
    Cenovus EnergyCVE10.04▼-1.29.03
     
    14.8420D   W
    EncanaECA8.35▼-2.38.11
     
    18.543D   W
    TourmalineTOU17.00▼-4.416.89
     
    26.1913D   W
    Vermilion EnergyVET30.49▼-2.430.29
     
    50.4613D   W
    SERVICES
    Pason SystemsPSI19.06▼-0.716.05
     
    24.5743D   W
    EnerflexEFX15.41▼-3.613.55
     
    18.7261D   W
    ShawcorSCL17.79▼-3.817.58
     
    29.508D   W
    Mullen Group MTL12.03▼-2.611.96
     
    16.9320D   W
    Secure EnergySES7.08▼-0.36.72
     
    9.8236↑D   W
    REFINING & MARKETING
    Parkland FuelPKI36.56▼-0.925.31
     
    47.4584D   W
    S&P 500 ENERGY STOCKS
    SPX BULLISH INDICATORS
    TOP 5
  • EQT Corp (EQT +6.6%)
  • Cabot O&G (COG +0.2%)
  • 12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • SPX BEARISH INDICATORS
    BOTTOM
    5
  • Apache (APA -5.3%)
  • Newfield Expl (NFX -5.1%)
  • Marathon Oil (MRO -4.7%)
  • Noble Energy (NBL -4%)
  • Cimarex Energy (XEC -3.8%)
  • 12-MO LOWS
  • Schlumberger (SLB -2.5%)
  • Halliburton (HAL -1.4%)
  • Ntl-Oilwell Varco (NOV -2.2%)
  • Baker Hughes (BHGE -1.8%)
  • TechnipFMC (FTI -0.2%)
  • Marathon Petro (MPC -0.9%)
  • Phillips 66 (PSX -1.7%)
  • Valero Energy (VLO -3.4%)
  • Apache (APA -5.3%)
  • Devon Energy (DVN -3.5%)
  • Noble Energy (NBL -4%)
  • Cimarex Energy (XEC -3.8%)
  • 10-YR LOWS
  • Baker Hughes (BHGE -1.8%)
  • Apache (APA -5.3%)
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    INTEGRATED
    Exxon MobilXOM76.54▼-1.572.16
     
    89.3056D   W
    ChevronCVX114.94▼-0.5107.54
     
    133.8858D   W
    MIDSTREAM
    Kinder MorganKMI16.04▼-1.914.69
     
    19.8351D   W
    Williams CoWMB24.08▼-1.623.54
     
    33.6740D   W
    ONEOKOKE59.16▼-1.451.28
     
    71.9942D   W
    LARGE CAP E&P
    ConocoPhillipsCOP65.20▼-1.150.18
     
    80.2459D   W
    EOG ResourcesEOG101.71▼-1.896.54
     
    133.5339D   W
    Occidental PetroOXY64.44▼-3.262.47
     
    87.6719D   W
    Anadarko PetroAPC51.06▼-1.947.37
     
    76.7013D   W
    Concho ResCXO120.45▼-1.7117.74
     
    163.1129D   W
    SERVICES
    SchlumbergerSLB41.97▼-2.541.02
     
    80.352D   W
    HalliburtonHAL29.28▼-1.428.68
     
    57.863D   W
    Ntl-Oilwell VarcoNOV29.16▼-2.228.55
     
    49.085D   W
    Baker HughesBHGE21.27▼-1.820.85
     
    37.762D   W
    TechnipFMCFTI20.97▼-0.220.64
     
    35.003D   W
    REFINERS
    Marathon PetroMPC60.98▼-0.959.55
     
    88.4522D   W
    Phillips 66PSX88.84▼-1.786.62
     
    123.9720D   W
    Valero EnergyVLO73.38▼-3.471.48
     
    126.983D   W
    HollyFrontierHFC54.95▼-3.342.42
     
    83.2817D   W
    NYSE ADRs
    ADRs BULLISH INDICATORS
    12-MO HIGHS
  • None
  • 10-YR HIGHS
  • None
  • GOLDEN CROSSES
  • None
  • ADRs BEARISH INDICATORS
    12-MO LOWS
  • Sasol Limited (SSL -3.7%)
  • 10-YR LOWS
  • None
  • DEATH CROSSES
  • None
  • COMPANY TICKER CLOSE %CHG L 52WK H RANK  CHARTS
    Royal Dutch ShellRDS.A58.85▼-0.857.65
     
    73.8610D   W
    TotalTOT54.09▼-0.453.37
     
    65.6944D   W
    BPBP39.37▼-0.436.15
     
    47.8347D   W
    EniE31.78▲0.131.18
     
    40.1537D   W
    EquinorEQNR22.95▼-1.020.02
     
    28.9339D   W
    ANALYST RATINGS

    UPGRADES

    • Apache (APA): Upgraded from Sell to Neutral at Seaport Global Securities.

    • Callon Petroleum (CPE): Upgraded from Neutral to Buy at Seaport Global Securities.

    • Cenovus Energy (CVE.TO): Upgraded from Hold to Buy at Tudor Pickering.

    • Concho Resources (CXO): Upgraded from Neutral to Buy at Seaport Global Securities.

    • ConocoPhillips (COP): Upgraded from Market Perform to Outperform at Wolfe Research.

    • Equinor (EQNR): Upgraded from Hold to Buy at Deutsche Bank.

    • Murphy Oil (MUR): Upgraded from Underperform to Market Perform at Wolfe Research.

    • Patterson-UTI Energy (PTEN): Upgraded from Market Perform to Buy at Wolfe Research.

    • Pioneer Natural Resources (PXD): Upgraded from Neutral to Buy at Seaport Global Securities.

    • TechnipFMC (FTI): Upgraded from Underperform to Market Perform at Sanford C. Bernstein.

    • SM Energy (SM): Upgraded from Neutral to Buy at Seaport Global Securities.

    • Total (TOT): Upgraded from Hold to Buy at Deutsche Bank.

    DOWNGRADES

    • Bonterra Energy (BNE.TO): Downgraded from Outperform to Sector Perform at National Bank.

    • BP Midstream Partners (BPMP): Downgraded from Neutral to Underperform at BofA.

    • Carrizo Oil & Gas (CRZO): Downgraded from Buy to Neutral at Seaport Global Securities.

    • Cenovus Energy (CVE.TO): Upgraded from Hold to Buy at Tudor Pickering.

    • Centennial Resource Development (CDEV): Downgraded from Outperform to Market Perform at Wolfe Research.

    • Delek (DK): Downgraded from Overweight to Neutral at JP Morgan.

    • Devon Energy (DVN): Downgraded from Outperform to Market Perform at Wolfe Research.

    • ENI (E): Downgraded from Buy to Hold at Deutsche Bank.

    • Halcon Resources (HK): Downgraded from Buy to Neutral at Seaport Global Securities.

    • Imperial Oil (IMO.TO): Downgraded from Buy to Hold at Tudor Pickering.

    • Jagged Peak Energy (JAG): Downgraded from Outperform to In-Line at Evercore.

    • Kosmos Energy (KOS): Downgraded from Outperform to Neutral at Exane BNP Paribas.

    • Marathon Oil (MRO): Downgraded from Outperform to In-Line at Evercore.

    • National Oilwell Varco (NOV): Downgraded from Market Perform to Sell at Wolfe Research.

    • Newfield Exploration (NFX): Downgraded from Buy to Neutral at Seaport Global Securities.

    • Paramount Resources (POU.TO): Downgraded from Buy to Hold at Tudor Pickering.

    • PDC Energy (PDCE): Downgraded from Market Perform to Underperform at Wolfe Research.

    • Penn Virginia (PVAC): Downgraded from Outperform to Market Perform at Northland Securities.

    • Phillips 66 Partners (PSXP): Downgraded from Buy to Neutral at BofA.

    • Royal Dutch Shell (RDS/A): Downgraded from Buy to Hold at Deutsche Bank.

    • Resolute Energy (REN): Downgraded from Outperform to Hold at Northland Securities.

    • Shell Midstream Partners (SHLX): Downgraded from Neutral to Underperform at BofA.


    UPDATED: DAILY (END-OF-DAY)

    SOURCES:
    • OIL PRICES REFLECT NEAR MONTH CONTRACT FROM THE NYMEX/CME GROUP
    • EQUITY PRICES PROVIDED BY NYSE & TMX GROUP
    • CHARTPACKS COURTESY STOCKCHARTS.COM (DIVIDEND ADJUSTED)

    NOTES:
    • OIL PRICES, FUTURES AND DIFFERENTIALS IN USD/BBL
    • C5+ = EDMONTON CONDENSATE
    • FUTURES CURVES SHOW PRICES FOR 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

    RANK:
    • BASED ON STOCKCHARTS TECHNICAL RANK (SCTR)
    • REFLECTS RELATIVE STRENGTH AMONG OTHER ENERGY STOCKS (PERCENTILE RANKING)
    • RISING RANK (↑) REFLECTS INCREASING RELATIVE STRENGTH
    • FALLING RANK (↓) REFLECTS DECREASING RELATIVE STRENGTH.
    OPEC comes to the rescue, giving a boost to oil markets

    OPEC comes to the rescue, giving a boost to oil markets

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