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

Crude Oil Futures Fall After Data Shows Dropping China Crude Imports

WTI and Brent crude oil futures are flat to lower in early trading, weighed down by data showing China's crude imports dropped by 3% from January to June compared with a year earlier.

SECTOR COMMENTARY:

The energy sector is poised for a mixed to higher start, pressured by weakness in the crude complex but supported by strength in the major equity indices which rose as investors awaited Federal Reserve chair Jerome Powell's testimony and more earnings reports from big banks poured in. 

WTI and Brent crude oil futures are flat to lower in early trading, weighed down by data showing China's crude imports dropped by 3% from January to June compared with a year earlier, the first such contraction since 2013 and news that Saudi Arabia and the United Arab Emirates had reached a compromise over a global supply deal that will allow the UAE to boost its output. Under the compromise, the UAE's baseline production will rise to 3.65 million barrels per day after the current pact expires in April 2022 and means that members of the OPEC+ will be able to extend a deal to curb output until the end of 2022. Supporting prices was last night’s API report showing U.S. crude stocks fell 4.1mm barrels last week and if confirmed by the EIA report later this morning, would mark a seventh consecutive week of inventory declines.

Natural gas futures rose over 1% in early trading, backed by forecasts for slightly hotter weather and higher air conditioning demand over the next two weeks than previously expected. 

BY SECTOR:

US INTEGRATEDS

No significant news. 

INTERNATIONAL INTEGRATEDS

bp and Energie Baden-Württemberg AG (EnBW) confirmed the names of their planned new offshore wind projects in the Irish Sea - Morgan and Mona - and launched a dedicated supplier portal for the developments. When complete, Morgan and Mona will have a combined potential generating capacity of 3GW, sufficient to power the equivalent of approximately 3.4 million UK households with clean electricity.

According to Reuters, Brazil's Raizen, a joint venture between Royal Dutch Shell and Cosan SA is targeting a valuation of around 70 billion reais ($13.5 billion) in its initial public offering, three people with knowledge of the matter said on Tuesday. The valuation may range from 60 billion to 80 billion reais depending on demand, they added. 

CANADIAN INTEGRATEDS 

No significant news.

U.S. E&PS

Chesapeake Energy Corporation today announced a new collaboration with MiQ and Equitable Origin to begin independent certification of its natural gas production under the MiQ methane standard and the EO100TM Standard for Responsible Energy Development, which covers a broad range of environmental, social and governance (ESG) criteria.

Laredo Petroleum announced the pricing of $400 million in aggregate principal amount of 7.750% senior unsecured notes due 2029 at par in a private offering to eligible purchasers. The Company intends to use the net proceeds from the offering for general corporate purposes, including repaying the borrowings outstanding under the Company’s senior secured credit facility. The offering is expected to close on July 16, 2021, subject to customary closing conditions.

Occidental announced the early tender results of its offers to purchase for cash its outstanding 2.700% Senior Notes due 2022, 2.70% Senior Notes due 2023, 3.450% Senior Notes due 2024, 2.900% Senior Notes due 2024, 3.500% Senior Notes due 2025, 3.400% Senior Notes due 2026, 3.200% Senior Notes due 2026 and Floating Interest Rate Senior Notes due 2022. In connection therewith, Occidental further announced that it is increasing the maximum aggregate purchase price of Notes it will accept for purchase, excluding accrued but unpaid interest, from the previously announced amount of $2,500,000,000 to $3,104,329,102.50 and that it is increasing the maximum aggregate principal amount to be purchased by Occidental of the 2026 Notes from the previously announced amount of $300,000,000 to $333,346,000.

SandRidge Energy announced that Carl Giesler, Jr. has resigned as Chief Executive Officer, President and a member of the Board of Directors for the Company in order to pursue another career opportunity. Mr. Giesler's resignation will be effective July 16, 2021, and is not the result of any disagreement with the Company or any matter relating to the Company's operations, policies or practices. The Board has appointed Grayson Pranin, the Company's current Senior Vice President and Chief Operating Officer, to serve as President, Chief Executive Officer and Chief Operating Officer.

CANADIAN E&PS

NuVista Energy announced that it has entered into an underwriting agreement to sell, on a private placement basis, $230 million aggregate principal amount of 7.875% senior unsecured notes due July 23, 2026 which was increased from the previously announced offering of $200 million. The Notes will be issued at $989.89 expressed as a price per $1,000.00 principal amount under a new trust indenture, and will be direct senior unsecured obligations of NuVista ranking equal with all other present and future senior unsecured indebtedness of the Company.

OILFIELD SERVICES 

Petrofac announced that EPS business secures new 3-year contract with ONEgas, according to Reuters

DRILLERS 

CIBC downgraded Precision Drilling to Neutral from Outperformer.

REFINERS

No significant news.

MLPS & PIPELINES

No significant news. 

MARKET COMMENTARY 

U.S. stock index futures edged higher ahead of Federal Reserve Chair Jerome Powell's testimony. European shares and most Asian stocks slipped as global investor mood soured on signs of increasing inflationary pressure. The dollar was lower against a basket of major currencies. In commodities, oil prices declined after data showed a drop in China's half-year crude imports, while gold prices rose. Investors will also keep an eye on producer price index, due for release 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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