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Energy Market Commentary: Final Day Of Trading For 2017


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Friday, December 29, 2017

Sector Commentary

The energy sector is poised to open the final trading day of 2017 higher, lifted by strength across the underlying commodities and major equity market indices. Trading is expected to be light across the markets and there are no major market drivers on tap for today.

In deal news, SandRidge Energy gave in to increasing activist pressures and announced that it has agreed to terminate its previously announced agreement to acquire Bonanza Creek. As part of the mutual termination agreement, Bonanza will receive up to $3.7 million for transaction related expenses. Shares of SandRidge were up ~2% in pre-market, while Bonanza Creek were down ~2%.

WTI crude oil futures are up over 0.3% in early trading, in line with Brent with both benchmarks touching their highest level since mid-2015. An unexpected fall in U.S. output and a fall in commercial crude inventories stoked further buying this morning while a U.S. cold spell which is expected to spur consumption of heating fuels and pose challenges for crude production, offered additional support. The National Weather Service said it expects heavy snowfall as "a surge of arctic air" may impact parts of the U.S., including the Northeast over the weekend. Analysts expect that the cold snap will boost the consumption of heating oils and pose challenges for refineries that may have difficulties operating in extreme temperatures.

Natural gas futures continued to build on yesterday's ~7% rally and are up about 1% so far this morning on the backs of further cold weather expected in key consuming regions that should spur additional demand.

INTERNATIONAL INTEGRATEDS

Press Release - Shell Canada Ltd. says market conditions will dictate when it will make a final investment decision on a $40-billion joint venture to export liquefied natural gas from British Columbia. Calgary-based Shell, a unit of Royal Dutch Shell PLC , is playing down expectations that it will set 2018 as the make-or-break year for the project in Kitimat on B.C.'s North Coast.

CAnadian INTergrateds

Press Release - Imperial Oil says its much-delayed $16.1-billion project to build a natural gas pipeline across the Northwest Territories from the coast of the Beaufort Sea to northern Alberta has finally been cancelled.

U.S. E&PS

Press Release - SandRidge Energy announced that it has agreed with Bonanza Creek Energy to terminate its previously announced agreement to acquire Bonanza Creek.

MARKET COMMENTARY

U.S. stocks were poised to open on a bright note on the final trading day of 2017, wrapping up a year in which major Wall Street indexes recorded their best performance since 2013.

Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services -- the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Tamar Essner . This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, "Nasdaq"), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: News Headlines , MarketInsite


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