Markets

Energy Market Commentary January 30, 2017: Nasdaq Advisory Services

MONDAY, JANUARY 30, 2017

SECTOR COMMENTARY

The energy sector is poised for a lower open, tracking crude futures and the broader equity markets ahead of a busy week on the economic data front. Data this week will include fresh readings on the global economy, a jump in earnings releases including some of the world's largest companies and meetings of the Federal Reserve and Bank of Japan. Weak U.S. growth data this past Friday and a negative social reaction to President Donald Trump's order to tighten immigration rules over the weekend also applied pressure.

WTI and Brent crude oil futures are flat to lower this morning, pressured by Baker’s rig count data Friday showing the number of active U.S. oil rigs rose to the highest since November 2015 last week, fueling concerns that the jump in U.S. production will offset the strives to limit output by OPEC and non-OPEC members. Weakness in the dollar helped to offset some of the pressure.

Natural gas futures slid lower this morning on mixed signals from weather models with one calling for more cold through mid-February while another pointed to less cold.

U.S. INTEGRATEDS

Reuters - Exxon Mobil Corp shut a 110,000 barrel per day (bpd) gasoline-producing fluidic catalytic cracking unit on Friday at the 502,500 bpd Baton Rouge, Louisiana, refinery for a planned overhaul, a source familiar with plant operations said on Monday.

U.S. E&PS

Capital One Securities initiated coverage of Kosmos Energy with an ‘Overweight’ rating.

(Late Friday) Press Release - Northern Oil and Gas announced that Michael Popejoy, Senior Vice President of Energy for TRT Holdings in Dallas, Texas has been appointed to Northern's board of directors.

Suntrust Robinson Humphrey Capital downgraded Rice Energy to ‘Hold’ from ‘Buy.’

CANADIAN E&PS

Canaccord Genuity suspended coverage of Canacol Energy, Gran Tierra Energy, Parex Resources and Touchstone Exploration.

OIL SERVICES

Industrial Alliance Securities initiated coverage of Secure Energy Services with a ‘Hold’ rating.

Macquarie Research initiated coverage of TechnipFMC with a ‘Neutral’ rating.

UBS Equities discontinued coverage of TechnipFMC.

DRILLERS

Jefferies upgraded Noble Corporation to ‘Buy’ from ‘Hold.’

Jefferies downgraded Rowan Companies to ‘Hold’ from ‘Buy.’

(Late Friday) Press Release - Trinidad Drilling is pleased to announce that it has priced its previously announced private placement of US$350 million senior unsecured notes and extended the maturity date of such Notes by one year.

REFINERS

(Late Friday) Press Release - Marathon Petroleum announced that J. Mike Stice has been elected to the company's board of directors, to be effective Feb. 22, 2017.

MLPs & PIPELINES

(Late Friday) Press Release - Columbia Pipeline Partners announced that the Board of Directors of CPP GP LLC, its general partner, declared a cash distribution of $0.1975 per common unit for the fourth quarter 2016.

Mizuho Securities USA downgraded Enbridge Energy Partners to ‘Neutral’ from ‘Buy.’

Reuters - Enterprise Products Partners reported quarterly fully diluted earnings per unit of $0.31. For 2017, it currently expects to invest in range of $2.0 billion to $2.5 billion for growth capital projects. It said that quarterly revenues were $6,478.8 million versus $6,155.0 million.

Press Release - Enterprise Products Partners announced plans to construct a new isobutane dehydrogenation unit in Mont Belvieu, Texas that will have the capability to produce 425,000 tons per year of isobutylene.

(Sunday) Reuters - Magellan MidstreamPartners said it resumed operations on the 12" pipeline between Rosemount, Minnesota and Mason City, Iowa.

Mizuho Securities USA initiated Plains All American Pipeline with a ‘Neutral’ rating.

Press Release - Seadrill Partners announced that its board of directors has declared a quarterly cash distribution with respect to the fourth quarter ended December 31, 2016 of $0.10 per unit, in line with the third quarter distribution.

MARKET COMMENTARY

U.S. stock index futures were lower after immigration curbs introduced by Donald Trump added an extra layer of uncertainty to the economic impact of the new U.S. president's policies. Personal consumption, personal income, Core PCE price index and pending home sales data are on the economic calendar. European shares dipped, tracking weakness in Asian shares. Oil prices fell as news of another increase in drilling activity spread concern over rising output. In the currency markets, investors sought the traditional security of the yen and the greenback was little changed against the sterling and the euro. Gold inched up.


Nasdaq Advisory Services Energy Team Nasdaq's Advisory Services Tamar Essner
This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.

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

Latest Markets Videos