Credit: Shutterstock photoWednesday, July 11, 2018
Sector Commentary
The energy sector is poised for a lower start, weighed down by weakness in the crude complex and major equity indices which fell on fresh trade concerns after the U.S. threatened tariffs on an additional $200 billion worth of Chinese goods. Sector news is light today and traders will be looking to the EIA inventory data out later this morning as the next major catalyst for the space.
WTI and Brent crude oil futures were down over 1% in early trading with Brent trailing its U.S. counterpart, pressured by the U.S.'s new tariff threats against China, Libya's announcement that their NOC is reopening key oil export terminals, signs of a possible relaxation of U.S. sanctions on Iranian crude exports and reports from OPEC which lowered their 2019 demand outlook. A bullish API inventory data last night showing U.S. crude inventories fell last week by 6.8 million barrels last week compared to expectations of a 4.5 million barrel draw helped buoy the domestic benchmark.
Natural gas futures inched higher this morning, backed by more warming weather forecasts in key consuming regions that should stir demand.
US INTEGRATEDS
Reuters - Chevron has decided not to extend beyond 2020 its operation in Indonesia's Makassar Strait block.
INTERNATIONAL INTEGRATEDS
Barclays upgraded Petroleo Brasileiro to 'Overweight' from 'Underweight'.
(Late Tuesday) Reuters - An electrical malfunction triggered flaring at Royal Dutch Shell 's Deer Park, Texas, refining and petrochemical complex.
CANADIAN INTEGRATEDS
Barclays upgraded Husky Energy to 'Overweight' from 'Equal Weight'.
Barclays upgraded Imperial Oil to 'Equal Weight' from 'Underweight'.
U.S. E&PS
Susquehanna initiated coverage of Centennial Resources with 'Neuteral' ratings.
Susquehanna initiated coverage of Diamond Back Energy and Parsley Energy with 'Positive' ratings.
Barclays downgraded Hess Corp to 'Underweight' from 'Equal Weight'.
Press Release - Sanchez Energy announced that Christopher D. Heinson, Senior Vice President and Chief Operating Officer, has resigned in order to assume the role of Chief Executive Officer with another energy company.
MARKET COMMENTARY
Tracking global shares, Wall Street futures fell after the Trump administration threatened 10 percent tariffs on $200 billion worth of Chinese imports, while the Chinese yuan and the euro lost ground. The dollar was broadly stronger, while gold prices dipped.. Producer price index data and revised wholesale inventories are on the economic tap.
NASDAQ ENERGY TEAM IN THE NEWS
7/5/2018 - Tamar Essner, energy analyst at Nasdaq Inc., discusses President Donald Trump's efforts to pressure OPEC to increase oil production with Bloomberg's David Westin and Julia Chatterley on "Bloomberg Daybreak: Americas." Watch the interview here:
Saudis the 'Central Bank' of Oil, Nasdaq's Essner Says
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 . 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
