Blue barrels of oil stacked sideways on top of each other
Oil

Crude Falls on Weak Chinese Demand, Traders Monitor OPEC+ Cuts

Both WTI and Brent extended last week’s slide into this morning’s session, pressured by weak Chinese demand in the wake of the coronavirus outbreak and as traders wait to see if Russia would join other nations in seeking further output cuts.

SECTOR COMMENTARY

Energy stocks are set to open mixed to lower, weighed down by further weakness in the underlying commodities while broader index futures trade flat as coronavirus fears linger. Sector news is quiet ahead of another week of corporate earnings.

Both WTI and Brent extended last week’s slide into this morning’s session, pressured by weak Chinese demand in the wake of the coronavirus outbreak and as traders wait to see if Russia would join other nations in seeking further output cuts. "The concern remains that the wider markets have yet to reflect the full impact of the disruption," said Saxo Bank commodity strategist Ole Hansen. "With China being the world's most dominant consumer of raw materials, the impact continues to be felt strongly across key commodities and the world is facing the biggest demand shock since the 2009 global financial crisis."

Natural gas futures tumbled ~4% and are trading at levels last seen since March 2016, weighed down by declines in the crude complex, falling global liquefied natural gas prices, and warmer weather forecasts for the next two weeks which should limit heating demand.

INTERNATIONAL INTEGRATEDS                                             

Reuters - Eni started production at 31-mw photovoltaic plant on Porto Torres Industrial Site, Sassari.

(Late Friday) Press Release - Knutsen NYK Offshore Tankers (KNOT) and ENIextended their partnership in the North Sea with two new LNG shuttle tankers. ENI, through their ownership in Vår Energi has many interests in North Sea gas and oil fields and is thus one of the major players in the area. This contract is the third and fourth long-term time-charter shuttle-tanker contracts between ENI and KNOT Group.

(Late Friday) Reuters - Petroleo Brasileiro said that it was hiring emergency workers to guarantee operations during the week-old strike called by unions to protest layoffs at a money-losing fertilizer factory.

Reuters - Qatargas signed a new long-term sale and purchase agreement with Shellto deliver 1 million tons per annum of liquefied natural gas to Kuwait.

U.S. E&PS

CNX Resources announced total proved reserves of 8.43 Tcfe, as of December 31, 2019, which is a 7% increase, compared to the previous year. CNX organically added 1,648 Bcfe of proved reserves through extensions and discoveries, which resulted in the company replacing over 300% of its 2019 net production of 539 Bcfe. These extensions and discoveries were a result of our continued development within the Marcellus and Utica Shale formations.

DRILLERS

Reuters - Diamond Offshore Drilling reported quarterly loss per diluted share of $0.54 and quarterly adjusted loss per diluted share of $0.45. Its total revenue for the quarter were $276.4 million.

MLPS & PIPELINES 

Press Release - Enable Midstream Partners announced that the board of directors of its general partner declared today a quarterly cash distribution of $0.3305 per unit on all outstanding common units for the quarter ended Dec. 31, 2019. The distribution is unchanged from the previous quarter. The quarterly cash distribution of $0.3305 per unit on all outstanding common units will be paid Feb. 25, 2020, to unitholders of record at the close of business Feb. 18, 2020. Enable also announced today that the board declared a quarterly cash distribution of $0.625 per unit on all Series A Preferred Units for the quarter ended Dec. 31, 2019. The quarterly cash distribution of $0.625 on all Series A Preferred Units outstanding will be paid Feb. 14, 2020, to unitholders of record at the close of business Feb. 7, 2020. 

Credit Suisse downgraded MPLX to ‘Neutral’ from ‘Outperform.'

Press Release - Pembina Pipeline’s board of directors has declared a common share cash dividend for February, 2020, of 21 cents per share to be paid, subject to applicable law, on March 13, 2020, to shareholders of record on Feb. 25, 2020.

MARKET COMMENTARY 

Wall Street futures were little changed and global equity markets fell, as concerns over the economic impact of the coronavirus outbreak weighed on investors’ sentiment. Gold prices edged up on safety bet, while the dollar weakened. Crude prices fell on weaker Chinese oil demand and as traders waited to see if Russia would join other producers in seeking further output cuts.

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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