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Oil

Crude Slides After Trump Says No Deadline for China Trade Deal

Oil prices are at session lows after rising yesterday after Trump said he has no deadline on a trade deal with China and it might be better to wait until after the 2020 election.

SECTOR COMMENTARY

Energy stocks are lower in the pre-market after broader futures retreated after Trump suggested the trade deal with China could be delayed until after the 2020 presidential election. This headline also pushed oil prices from positive to negative territory. Sector news was light. Suncor shares are higher after the company published its 2020 plan which included lower than expected capital expenditures.

Oil prices are at session lows after rising yesterday after Trump said he has no deadline on a trade deal with China and it might be better to wait until after the 2020 election. Meanwhile, uncertainty over Russia’s commitment to the OPEC deal also pressured prices. Yesterday prices were lifted on speculation that Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the initial public offering of state-owned Saudi Aramco but it remains unclear that consensus for deeper cuts would be possible. 

Natural gas prices are up 3%, extending yesterday’s strength, as some updated models indicate colder weather next week.

INTERNATIONAL INTEGRATEDS

(Late Monday) Reuters - Petroleo Brasileiro SA Petrobras started divestiture of two onshore fields in Sergipe-Alagoas Basin. The company will sell 50% of fields Do-Re-Mi and Rabo Branco it owns in partnership with Petrogal.

Press Release - Qatar Petroleum, for and on behalf of Qatar Petroleum for the Sale of Petroleum Products Company (QPSPP), has concluded a five-year sale agreement with Shell International Eastern Trading Company (SIETCO), a registered business of Royal Dutch Shell’s Shell Eastern Trading (Pte) Ltd., which is based in Singapore. Under the agreement, QPSPP will supply SIETCO with a total of 900,000 metric tons of full-range naphtha and plant condensate per year, starting in April 2020.

(Late Monday) Reuters - Total shut the coker and large vacuum distillation unit at its 225,500 barrel-per-day (bpd) Port Arthur, Texas, refinery. The 60,000 bpd coker and 60,000 bpd VDU will be shut for about two weeks of maintenance. Total also restarted the 35,000 bpd reformer that was shut following a Nov. 16 fire on the unit.

CANADIAN INTEGRATEDS

(Late Monday) Press Release - Suncor released its 2020 corporate guidance which focuses on driving its $2 billion of incremental free funds flow target by 2023, achieving its 2030 sustainability targets, and reflects the company’s recent 800 MW cogeneration investment announcement. The capital program is expected to be between $5.4 and $6.0 billion with flat investment in oil related projects year over year. Upstream production is expected to be between 800,000 to 840,000 barrels of oil equivalent per day (boe/d), an approximately 5% production increase compared to 2019 midpoint guidance.

U.S. E&PS

(Late Monday) Press Release - Range Resources announced that its Board of Directors declared a quarterly cash dividend on its common stock for the fourth quarter.  A dividend of $0.02 per common share is payable on December 30, 2019 to stockholders of record at the close of business on December 13, 2019.

OILFIELD SERVICES   

Press Release - OTC Markets Group Inc. announced Basic Energy Services, Inc. has qualified to trade on the OTCQX Best Market. Basic Energy Services, Inc. begins trading today on OTCQX under the symbol "BASX."

(Late Monday) Press Release - Weatherford International announced that William E. Macaulay, Chairman of the Company's Board of Directors, died unexpectantly late last week. The Company extends its sincerest condolences to his family during this difficult time and expresses its gratitude for his decades of commitment and leadership.

DRILLERS

BTIG downgraded Valaris to ‘Neutral’ from ‘Buy.’ 

MLPS & PIPELINES

Noble Midstream Partners was upgraded to outperform from neutral at RW Baird.

MARKET COMMENTARY

Wall Street futures fell, along with most European and Asian stocks, after U.S. President Donald Trump said a trade deal with China might have to wait until the U.S. presidential election in November 2020. The dollar edged down, while gold prices rose. Oil prices were little changed ahead of an OPEC meeting this week.

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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