Leadership

Crude Little Changed Ahead of Inventories Report

Wednesday, April   3, 2019

SECTOR COMMENTARY

The energy sector is poised for a mixed to higher start, tracking the crude complex and supported by strength in the major equity indices which gained on signs of progress in U.S.-China trade talks, reassuring economic data and hopes of a softer Brexit.

WTI crude oil futures were flat in early trading, trailing Brent which has continued trend just off five-month highs. OPEC-led supply cuts and U.S. sanctions continued to offer support to futures on both sides of the Atlantic but a weak API read weighed on domestic prices ahead of the official EIA data later this morning. Last night’s industry report showed U.S. crude stocks unexpectedly rose 3MM barrels last week, increasing compared with analyst expectations of a 425k barrels decline.

Natural gas futures continued to slide lower, falling on moderate weather forecast in key consuming regions that should stunt demand.

U.S. INTEGRATEDS

Press Release - McDermott International announced that Chevron Lummus Global (CLG), McDermott's joint venture with Chevron, has been has been awarded a sizeable technology contract by Chennai Petroleum Corporation Limited (CPCL) for the license and basic engineering design of a 2,500 KTA delayed coker at its planned Cauvery Basin Refinery at Nagapattinam in Tamilnadu, India. The unit will utilize the proprietary CLG delayed coking technology which maximizes value from the vacuum residue stream.

INTERNATIONAL INTEGRATEDS

(Late Tuesday) Reuters - Petroleo Brasileiro received three bids for gas pipeline network TAG. Groups led by France's Engie SA ENGIE.PA, Itausa Investimentos Itau SA, and EIG Global Energy Partners with Mubadala Investment Co delivered their final bids to the oil company known as Petrobras on Tuesday.

(Late Tuesday) Reuters - Royal Dutch Shell has hit the climate ball back into investors’ court. The $260 billion oil major said it’s ditching a trade association whose views on climate change don’t align with the company’s own. Shareholders can take some credit for the change. They also have room to push for more – and not just at Shell.

Reuters - Total said it has signed a 10-year sales and purchase deal with China's independent gas company Guanghui for annual supply of 0.7 million tonnes. The super-chilled fuel will be sourced from the French company's global portfolio and supplied into Guanghui's regasification terminal in Qidong in East China. Total didn't say when the supply will commence.

Press Release - Tellurian and Total announced that the two companies have signed a Heads of Agreement (HOA) for Total to make a $500 million equity investment in the integrated Driftwood project and to purchase one million tonnes per annum (1 mtpa) of liquefied natural gas (LNG) from Driftwood.

CANADIAN INTEGRATEDS

Evercore ISI downgraded Suncor Energy to ‘In Line’ from ‘Outperform.’       

U.S. E&PS

Reuters - Oando aims to raise fresh capital over the next two years and repay debt used to acquire Conoco Phillips' Nigerian assets. It also plans to resume dividend payments.

Barclays initiated coverage of Encana Corp with an ‘Overweight’ rating.

CANADIAN E&PS

Evercore ISI upgraded Canadian Natural Resources to ‘Outperform’ from ‘In Line.’ 

(Late Tuesday) Press Release - Peyto Exploration & Development announced that the board of directors of Peyto has approved amendments to the Company's standard by-laws. The amendments include certain housekeeping amendments to update the by-laws to current standards being: (i) the increase of quorum requirements for shareholder meetings to a quorum for shareholder meetings to be 2 persons present, either in person or by proxy, representing 25% of more of the outstanding common shares; (ii) the removal of a second or casting vote for the Chairman of the Board or any other director of the Company present at the meeting in the event of an equality of votes at any meeting of shareholders; and (iii) the addition of advance notice provisions.

OILFIELD SERVICES

Press Release - McDermott International announced that Chevron Lummus Global (CLG), McDermott's joint venture with Chevron, has been has been awarded a sizeable* technology contract by Chennai Petroleum Corporation Limited (CPCL) for the license and basic engineering design of a 2,500 KTA delayed coker at its planned Cauvery Basin Refinery at Nagapattinam in Tamilnadu, India. The unit will utilize the proprietary CLG delayed coking technology which maximizes value from the vacuum residue stream.

Press Release - Patterson-UTI Energy reported that for the month of March 2019, the Company had an average of 171 drilling rigs operating. For the three months ended March 31, 2019, the Company had an average of 175 drilling rigs operating.

AltaCorp initiated coverage of Shawcor at ‘Outperform’.

(Late Tuesday) Press Release - TechnipFMC has been awarded a substantial integrated Engineering, Procurement, Construction and Installation (iEPCITM) contract from Neptune Energy for the Duva and Gjøa P1 projects, located in the Norwegian sector of the North Sea at a water depth of 375 meters.The contract covers the delivery and installation of subsea equipment including umbilicals, rigid flowlines and subsea production system.

MARKET COMMENTARY

Signs of progress in trade talks between the U.S. and China pushed world stocks and Wall Street futures higher. Trade talk optimism also fueled gains in Australian dollar and yuan. Risk-conducive environment pulled gold prices lower but the weaker dollar capped losses. Oil prices rose for a fourth day, supported by OPEC-led supply cuts and U.S. sanctions. National Employment Report by ADP and PMI data are due for release later in the day.

NASDAQ ENERGY TEAM THOUGHT LEADERSHIP 


Nasdaq Advisory Services Energy Team Nasdaq's Advisory Services 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.

Nasdaq MarketInsite

Ideas that drive capital markets

Learn More