Crude in Focus as U.S. Plans Release from Emergency Reserve
SECTOR COMMENTARY:
U.S. stock futures were quiet in early morning trading after a tech-focused sell-off spurred by rising bond yields that saw the Nasdaq Composite drop more than 1%.
Oil fell after the U.S. announced a release from its emergency reserve -- in tandem with several of the world’s biggest consumers -- in a bid to cool gasoline prices and tame surging inflation. The world’s largest economy is tapping its Strategic Petroleum Reserve after energy prices soared to multiyear highs, with a global energy crisis exacerbating the tightness in the oil market. China, India, Japan, South Korea and the U.K. will also make announcements, according to the White House.
U.S. natural gas futures jumped about 4% on Tuesday, erasing most of Monday's 5% drop, as soaring global gas prices keep demand for U.S. liquefied natural gas (LNG) exports near record highs. Gas prices in Europe soared about 6% on Tuesday as colder weather increased demand and the market remained nervous about winter supplies from Russia.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
Royal Dutch Shell has launched talks with investors to secure support for its plan to relocate its headquarters from the Netherlands to Britain, sources said, as a leading advisory recommended backing the move at a December vote.
Royal Dutch Shell said it plans to build a pyrolysis oil upgrader to turn plastic waste into chemical feedstock at its petrochemical complex in Singapore, part of its shift from oil and gas to renewables and low-carbon energy.
TotalEnergies said it had won new deals in Libya, including the increase of its stake in the Waha oil concessions in the country.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Tudor Pickering Holt initiated coverage of Denbury with a Buy rating.
Oasis Petroleum announced the appointment of Marguerite Woung-Chapman to the Board of Directors, effective immediately. Ms. Woung-Chapman will serve on the Board's Compensation Committee as well as its Nominating, Environmental, Social & Governance Committee. With the addition of Ms. Woung-Chapman, the Oasis Board now comprises eight directors, seven of whom are independent. Oasis remains committed to regular director refreshment to ensure that its Board has the skillsets, independence and diversity to effectively oversee the Company's strategy and operations.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
Halliburton Company announced it has been named to the Dow Jones Sustainability Index (DJSI) North America, which highlights the top 10% most sustainable companies per industry. The DJSI measures the performance of best-in-class companies selected using environmental, social and governance (ESG) criteria.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
Frontline will sell four of its scrubber fitted LR2 tankers for $160 million to SFL Tanker Holding Ltd. The vessels are expected to be delivered to the new owners during the fourth quarter of 2021 and the first quarter of 2022. After repayment of existing debt on the vessels, the transaction is expected to generate net cash proceeds of approximately $67.0 million, and the Company expects to record a total gain divided between the fourth quarter of 2021 and the first quarter of 2022 of approximately $11.2 million.
MARKET COMMENTARY
U.S. stock index futures mostly fell as rising Treasury yields weighed on major technology stocks, while bank shares extended gains as investors priced in an early policy tightening by the Federal Reserve. A resurgence in COVID-19 cases continued to hammer European equity markets. Shanghai stocks closed higher as risk appetite got a lift on the prospect that China will lower corporate funding costs and aid small firms. The dollar eased against a basket of major currencies after hitting new 16-month highs. In commodities, gold prices slipped below $1,800 per ounce and oil prices dropped as the White House announced release of U.S. crude reserves. Markit PMI numbers are scheduled for release later in the day.
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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