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Energy Market Commentary December 23, 2016: Nasdaq Advisory Services

Friday, December 23, 2016

Sector Commentary

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.

U.S. INTEGRATEDS

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.

INTERNATIONAL INTEGRATEDS

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.

U.S. E&PS

(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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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