Crude Climbs as OPEC+ Considers Further Supply Cuts
SECTOR COMMENTARY:
The energy sector is set for a higher start, supported by strength in the crude complex while major equity futures steadied ahead of the holiday-shortened week.
WTI and Brent crude oil extended their rally higher for the second-straight session, backed by weakness in dollar and the prospect of OPEC+ deepening supply cuts to support prices. Analysts expect further cuts to make way for a short-term price boost, rather than a long-term impact. China’s export data is also lending support this morning following reports that showed exports fell 20% in October from a year earlier even as domestic road travel surged during the Golden Week holiday. Trip numbers were up 71.3% from a year earlier and 4.1% higher than in 2019, according to data released by state media outlet Xinhua. WTI futures are faring better than the international benchmark Brent, ahead of the front-month contract’s expiration later today.
Natural gas futures are lower despite forecasts for cooler temperatures through the end of November and beginning of December.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
Subsea 7 S.A. announced the award of a sizeable contract by Shell for the decommissioning of subsea infrastructure associated with the FPSO Fluminense in the Bijupirá and Salema fields of the Campos Basin, at 700m water depth.
Venezuela is close to approving a license for Shell and the National Gas Company of Trinidad and Tobago to develop a promising offshore natural gas field and export its production to the Caribbean country, two people close to the matter said.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Murphy Oil announced the early tender results of its previously announced series of tender offers to purchase for cash up to $250,000,000 aggregate principal amount of certain of its outstanding series of senior notes listed in the table below. The Tender Offers are being made pursuant to the terms and conditions set forth in the Offer to Purchase, dated November 3, 2023. The Company refers investors to the Offer to Purchase for the complete terms and conditions of the Tender Offers.
Stifel initiated coverage of Kosmos Energy with Buy rating and $10 price target.
Citigroup initiated coverage of Vital Energy with Buy rating and a $60 price target.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
Expro Group Holdings previously disclosed an incident, offshore Australia, in which the wire failed on the main crane of a third party-owned vessel working with the Company while the crane was suspending the subsea module of the Company’s vessel-deployed lightwell intervention system. In a press release dated October 26, 2023, the Company disclosed that it did not expect that recovery and repair costs, net of insurance, would be material to the Company’s financial results and that, after recovery of the LWI equipment, it would be in a position to determine when the LWI system would be able to return to operational status, what alternative service delivery options and service partner options were available to the Company and the timing and cost (including potential damages claims) of completing customer work scopes for which the LWI system was integral.
DRILLERS
No significant news.
REFINERS
Marathon Petroleum said on Sunday one person was injured and 20 facility workers were evacuated due to a fire at its Martinez refinery in California which firefighters had extinguished. "A fire was reported on a stack at a renewable diesel manufacturing company. The fire has been suppressed but the fire department will remain on scene to watch for spot fires," the company said in a filing with the state regulator early. Marathon Petroleum responders extinguished the fire at the company’s Martinez renewable fuels facility, and one employee was injured and transported to a medical facility, the company told Reuters in an emailed response.
MLPS & PIPELINES
No significant news.
MARKET COMMENTARY
Wall Street futures ticked up as Microsoft outpaced megacap peers on news that former OpenAI head Sam Altman will join the software giant. European stocks were mixed after a strong week driven by aggressive bets on interest rate cuts, while drugs-to-pesticides group Bayer slid to a 14-year low and weighed on Germany's benchmark index. Japan's Nikkei share average touched a three-decade-high before reversing course to end lower. Oil futures edged up on the possibility of OPEC+ deepening the supply cuts to bolster prices that have fallen on demand concerns and Israel-Hamas conflict. The dollar weakened and gold prices dipped as investors awaited minutes of Federal Reserve's last meeting due this week.
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 Rich Pontillo.
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Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services. 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.
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