Crude Edges Higher, Remains on Track for Weekly Gain

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Friday, July 12, 2019


Energy stocks are set to open slightly higher, supported by mild strength in the underlying commodities and major index futures which continue to push higher following Fed Chairman Jerome Powell's dovish remarks this week which boosted bets of an interest rate cut this month.

Oil prices on both sides of the Atlantic are fractionally higher, but well off overnight highs after posting a moderate decline yesterday. Futures remain on track to post a healthy weekly gain, driven by Wednesday's sharp rise on a bullish US inventory data and the hurricane threat in the Gulf of Mexico. However, gains were capped following reports from the EIA this morning which forecasted a global oil surplus in the next nine months.

Natural gas futures are moving higher after muted overnight trading and yesterday's volatile session that ended near lows after an initial gain following the EIA inventory data. Near-term weather forecasts are little change.


Reuters - Indonesian gas utility PT Perusahaan Gas Negara said it has signed a memorandum of understanding with a unit of Repsol to purchase natural gas from Sakakemang block. PGN may purchase around 400 to 500 billion British thermal unit per day (bbtud) from the block in South Sumatra.

Reuters - Aker BP, formed from a merger of BP 's Norwegian oil assets and the Det norske oil firm controlled by billionaire Kjell-Inge Roekke, has made an oil discovery off Norway which could strengthen its hand in negotiations with sometimes partner Equinor on how to develop fields.


(Late Thursday) Press Release - Ultra Petroleum announced that it terminated its previously announced private offer to exchange outstanding 7.125% Senior Notes due 2025 of its wholly owned subsidiary, Ultra Resources, Inc., for new 9.00% Cash / 2.50% PIK Senior Secured Third Lien Notes due 2024 of Ultra Resources. All 2025 Notes previously tendered in the Exchange Offer and not validly withdrawn will be promptly returned to their respective holders. No 2025 Notes will be accepted for exchange and no Third Lien Notes will be issued.


(Late Thursday) Press Release - CES Energy Solutions announced that the Toronto Stock Exchange has accepted CES's notice of its intention to implement a normal course issuer bid.  The NCIB effectively renews the existing NCIB which is scheduled to terminate on July 16, 2019.


(Late Thursday) Reuters - The gasoline-producing unit at Marathon Petroleum 's 585,000-barrel-per-day Galveston Bay Refinery in Texas City, Texas, may remain shut for one to eight weeks for repairs.


U.S. stock futures rose, a day after the Dow and S&P 500 closed at record highs, which was tracked by some Asian shares. European stocks were marginally up, supported by financial and mining shares. Against a basket of currencies, the dollar was lower for a third straight day. Oil prices advanced as U.S. oil producers in the Gulf of Mexico cut by output by more than half, in the face of a tropical storm and as tensions in the Middle East remained. Gold prices rose on safe-haven demand. Producer Price Index is scheduled on economic calendar .


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.

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