Friday, December 23, 2016
Energy stocks are poised for a lower opening on pressure from weakness in the broader equities market as well as on pressure from crude oil prices being down by 1%. Corporate news is light and trading volumes are expected to be muted ahead of the Christmas holiday.
Both Brent and WTI prices are trading down by 1%, at the lows of the morning, on year-end profit-taking, which brought Brent below $55 and WTI below $53, pressured by a stronger U.S. dollar and higher Libyan output. Also weighing on oil was a surprise increase in U.S. crude stocks reported in yesterday’s government's weekly supply report — and the prospect of sales beginning in January of crude from the U.S. Strategic Petroleum Reserve.
Natural gas futures are up about 1%, reversing yesterday’s losses, on artic temperatures expected and with the potential for working storage to fall below the 5 year average in next week’s report.
Press Release - Chevron announced that its wholly-owned subsidiaries have entered into a sales and purchase agreement with Star Energy Consortium to sell Chevron’s Indonesian and Philippines Geothermal assets.
Reuters - BP agreed with Azerbaijan to extend a contract to develop the country's biggest fields by a quarter of a century to 2050 in a move to unlock billions of dollars of fresh investments in the Caspian Sea deposits.
(Late Thursday) Press Release - Chesapeake Energy announced that the Company is calling for redemption in full on January 21, 2017 all of its outstanding 6.5% Senior Notes due 2017.
(Late Thursday) Reuters - Extraction Oil & Gas filed for resale or other disposition of up to 18.8 million shares of Co's common stock, which may be offered for sale by selling stockholders.
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