Wednesday, December 26, 2018
Sector Commentary
The energy sector is poised for a mixed to higher start, supported by some mild strength in the crude complex and in the major equity indices which inched higher after four-straight sessions of sharp declines that pushed the S&P 500 near bear market territory. Sector news is light today and trading is expected to be thin following yesterday Christmas holiday and as trading in most major Europe markets and in the UK is suspended for the Boxing Day. Additionally, the major economic indicators and EIA data normally scheduled for today have been postponed.
WTI crude oil futures are up nearly 1% in early trading, outpacing Brent which flat after breaching back the $51-mark in overnight trading. Futures on both sides of the Atlantic jumped today on perceptions that the recent price slide which brought prices back to 2017 lows, has been overdone amid the OPEC-led efforts to tighten supply. Conviction is low however and trading is also expected to be very thin.
Natural gas futures dropped ~2.5% this morning, pressured by new forecasts for warmer than originally anticipated weather over the next two weeks.
INTERNATIONAL INTEGRATEDS
Reuters - Shell said that it has begun output at its Prelude floating liquefied natural gas (FLNG) facility in Australia, the world's largest floating production structure and the last of a wave of eight LNG projects built in the country over the last decade.
DRILLERS
(Late Monday) Press Release - Ensign Energy Services and Trinidad Drilling announced Ensign's offer to purchase all the common shares of Trinidad for $1.68 per share has expired. Trinidad will proceed with the special meeting of Trinidad shareholders scheduled for January 31, 2019 to consider, and approve, a going private Subsequent Acquisition Transaction.
MLPS & PIPELINES
Press Release - GasLog announced that, as referenced in the GasLog press release of August 20, 2018, Cheniere Marketing International LLP, subsidiary of Cheniere Energy Inc, has exercised its option for two new charter party agreements each for a firm period of seven years. To fulfil the Charters, two LNG carriers have been ordered from Samsung Heavy Industries in South Korea.
MARKET COMMENTARY
U.S. stock futures rose on Wednesday, indicating a slight respite after punishing few sessions that have pushed the S&P 500 near bear market territory on worries over slowing growth and the recent drama in the White House. The partial shutdown of the U.S. federal government over political impasse with the border wall funds and the recent departure of the U.S. defense chief have added to investor worries over U.S.-China trade tensions and other geopolitical events, crimping global growth and corporate profit.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- Bloomberg TV Commodities Edge – Q2’18 Earnings Themes
- Bloomberg TV DayBreak Americas - (Discussion with Kevin Holt, CIO of Invesco, begins at 0:56:58 – 1:05:22)
- TD Ameritrade Network– Trade Tariff Effects on Market & Interest Rates
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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