Oil
Oil

Crude Slides on Renewed COVID-19 Concerns

WTI and Brent are off overnight highs of $79.32 and $82.24, respectively and on pace for their fourth-straight weekly decline.

SECTOR COMMENTARY: 

The energy sector is poised for a 2.5% decline at the open, pressured by sharp weakness in the crude complex while the broader index futures are mixed to lower as rising COVID-19 cases in Europe and renewed lockdown measures in Austria hurt the reopening trade.

WTI and Brent are off overnight highs of $79.32 and $82.24, respectively and on pace for their fourth-straight weekly decline. Renewed covid concerns are among the factors pressuring prices this morning. Austria announced it will go back into a nationwide lockdown due to covid pressures starting Monday, while Germany's health minister said he could not rule out stricter covid measures. The December WTI contract expires this afternoon.

Natural gas futures are trading higher in early trading. NOAA forecasts yesterday afternoon were roughly unchanged day-over-day with the 6-14 day forecasts still expecting above-seasonal temperatures in the western half of the L48 and seasonal-to-below-seasonal temperatures in the east.

BY SECTOR:

US INTEGRATEDS

No significant news.

INTERNATIONAL INTEGRATEDS                         

Petrobras said its capital expenditure (capex) plans for the 2022-2026 period is likely to be between $60-70 billion, confirming a Reuters story published on Thursday. Petrobras added, however, that the new capex is still under analysis by its board of directors. Reuters first reported on Thursday, citing sources, that Petroleo Brasileiro SA - as the company is formally known - is expected to commit between $60 billion and $70 billion in capex in its next multi-year business plan as it focuses on exploration and production in subsalt areas. For the 2021-2025 program, Petrobras had previously forecast a capex of $55 billion.

TotalEnergies signed an agreement with the Government of Suriname to provide support for its national strategy to reduce greenhouse gas emissions by preserving forests in the country. This public-private partnership illustrates the alignment between the ambition of TotalEnergies and the Government of Suriname to protect forest ecosystems and biodiversity while benefiting local communities.

CANADIAN INTEGRATEDS

Scotiabank upgraded Imperial Oil to Sector Outperform from Sector Perform.

U.S. E&PS

EQT announced the commencement of an underwritten public offering of 10,973,685 shares of its common stock by certain shareholders who received the shares as a part of the Company's acquisition of Alta Resources Development, LLC's upstream and midstream subsidiaries. Such selling shareholders intend to grant the underwriters a 30-day option to purchase up to an additional 1,646,051 shares of the Company's common stock. EQT will not sell any shares of its common stock in the Offering and will not receive any proceeds from the sale of the shares being offered by the selling shareholders. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed.

Morgan Stanley upgraded EQT to ‘Overweight’ from ‘Equal-weight’. The firm also downgraded Range Resources to ‘Underweight’ from ‘Equal-weight’.

Matador Resources announced the closing of a new amended and restated credit agreement. The Credit Agreement, which is dated November 18, 2021 and is more formally described as the Fourth Amended and Restated Credit Agreement, amends and restates that certain Third Amended and Restated Credit Agreement dated as of September 28, 2012 among MRC Energy Company, a wholly-owned subsidiary of the Company, as borrower; various lenders as individual parties thereto; Royal Bank of Canada, as administrative agent to the agreement; and Matador Resources as a guarantor.

Wells Fargo upgraded Matador Resources to Overweight from Equal Weight. The firm also upgraded Callon Petroleum to Equal Weight.

W&T Offshore announced that the Company was the apparent high bidder on two blocks in the Gulf of Mexico Lease Sale 257 held by the Bureau of Ocean Energy Management on November 17, 2021. W&T will also be participating in two upcoming investor conferences

CANADIAN E&PS

No significant news.

OILFIELD SERVICES

TechnipFMC and PETRONAS Technology Ventures Sdn Bhd (PTVSB), a subsidiary of PETRONAS, entered into an agreement to commercialize a unique natural gas processing membrane which reduces greenhouse gas (GHG) emissions.

TechnipFMC announced that it has commenced a tender offer for up to $100 million aggregate principal amount of its (i) 6.500% Senior Notes due February 1, 2026; (ii) 5.75% Notes due June 30, 2025; (iii) 3.15% Notes due October 16, 2023; and (iv) 3.15% Notes due October 18, 2023.

Benchmark initiated coverage of the following companies: Halliburton with a Buy rating, Schlumberger with a Hold rating, Baker Hughes with a Hold rating, and Weatherford International with a Buy rating.

DRILLERS

Nabors Industries announced that Nabors Industries has priced $700 million in aggregate principal amount of senior priority guaranteed notes due 2027 in the offering it announced earlier today. The Notes will bear interest at an annual rate of 7.375% and are being offered to investors at an initial price of 100% of par. The sale of the Notes to the initial purchasers is expected to close on November 23, 2021, subject to customary closing conditions, and is expected to result in approximately $688.9 million in net proceeds to Nabors after deducting offering expenses payable by Nabors.

REFINERS

Valero Energy announced that it has priced a public offering of $500,000,000 aggregate principal amount of 2.800% Senior Notes due 2031 and $950,000,000 aggregate principal amount of 3.650% Senior Notes due 2051.

MLPS & PIPELINES

No significant news.

MARKET COMMENTARY

Nasdaq index futures hit a record high as investors sought economically stable sectors after a small delay in voting on President Joe Biden's $1.75 trillion spending bill. European stocks retreated from record highs and oil prices dropped below $79 a barrel as a fresh surge in COVID-19 cases in Europe threatened to slow the economic recovery. Hong Kong shares were down more than 1%, dragged down by index heavyweight Alibaba, while sharp rises in the property and logistics shares helped China stocks end higher. Japan's Nikkei rose as chipmaking giants tracked their U.S. peers higher. In currencies, the dollar was on track for a fourth straight week of gains against major rival currencies, while the euro was down more than 1% this week versus the greenback, a second consecutively weekly drop. Gold prices edged higher as rising inflation buoyed its safe-haven appeal.


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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