Oil barrels stacked atop one another
Oil

Crude Climbs as EU Manufacturing Data Counters Coronavirus Concerns

Oil prices are slightly higher, aided by some better-than-expected EU manufacturing data and potential for another storm in the Gulf of Mexico.

SECTOR COMMENTARY

Energy stocks are poised for a mixed to higher start, backed by moderate gains in the crude complex and U.S. stock index futures which edged higher on positive COVID-19 treatment news and better-than-expected corporate earnings, while investors continue to monitor stimulus talks.

Oil prices are slightly higher, aided by some better-than-expected EU manufacturing data and potential for another storm in the Gulf of Mexico. The National Hurricane Center is giving an area of low pressure in the Caribbean 50% odds of forming into a tropical storm in the next 48 hours. Demand concerns raised by surging coronavirus cases in the United States and Europe capped a lid to the upside for futures. "There is little in the way of support from the demand side in view of the extremely high number of new COVID-19 cases," said Commerzbank analyst Eugen Weinberg. "There is also pressure on prices from the supply side."

Natural gas is off 1.8% to $2.952 after closing above $3.00 the prior two sessions for the first time since January 19. The NOAA 8-14 day forecast last night was slightly warmer compared to Wednesday, but still expect below-seasonal temps for the Eastern L48 ex-FL and GA.

INTERNATIONAL INTEGRATEDS  

Press Release - Keweenaw Land Association announced that it has executed a carbon offset sale with BP Products North America Inc. (a subsidiary of BP p.l.c). Finite Carbon will serve as the project developer and provide ongoing project monitoring and reporting.

Reuters - Petrobras said it has released teaser for sale of stake in 11 inland oil fields in the Sergipe-Alagoa bay.

Press Release - Petrobras announced the final results of the previously announced offers to purchase for cash by its wholly-owned subsidiary Petrobras Global Finance B.V., of any and all of its outstanding notes.

U.S. E&PS  

Stephens downgraded Concho Resources and Parsley Energy to ‘Equal Weight’ from ‘Overweight’.

Simmons Energy upgraded EOG Resources and Pioneer Natural Resources to ‘Overweight’ from ‘Neutral’.

(Late Thursday) Press Release - Laredo Petroleum announced that the borrowing base of the Company’s Senior Secured Credit Facility was reaffirmed at $725 million in association with the semi-annual redetermination process. Additionally, the Company announced the purchase of 2,758 net acres in Howard County, including production of 210 barrels of oil equivalent per day, for $11.3 million.

MLPS & PIPELINES   

Press Release - The Board of Directors of Holly Energy Partners has declared a cash distribution of $0.35 per unit for the third quarter 2020. The distribution will be paid on November 12, 2020 to unitholders of record on November 2, 2020.

(Late Thursday) Press Release - The board of directors of Magellan Midstream Partners has declared a quarterly cash distribution of $1.0275 per unit for the period July 1 through Sept. 30, 2020. The third-quarter 2020 distribution is approximately 1% higher than the third-quarter 2019 distribution of $1.02 per unit and same as the second-quarter 2020 amount.

Press Release - MPLX announced that it will extend its binding open season for the expansion of the SLC Core Pipeline System by two weeks. In response to feedback from potential shippers, MPLX is making modest revisions to its transportation service agreement under the open season process.

MARKET COMMENTARY

Futures tracking the S&P 500 and the Dow rose slightly as investors anticipated progress in bipartisan talks over the next coronavirus aid bill as the Nov. 3 presidential election neared. European stocks rose, boosted by positive earnings updates from Barclays and carmakers. Japan’s Nikkei ended in the green after signs of progress in U.S. stimulus talks helped Wall Street finish higher overnight. Gold prices firmed above $1,900 an ounce, as the dollar weakened. Oil edged higher on the prospect of an extension to OPEC-led supply curbs. IHS Markit’s manufacturing and services PMI numbers are due on the U.S. economic calendar later in the day.

NASDAQ ENERGY TEAM THOUGHT LEADERSHIP


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


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