Oil Boosted by Tighter Supply Outlook
The energy sector is poised for a mixed to lower start, looking past strength in the underlying commodities and pressured by weakness in the major equity futures. U.S. stock index futures were poised to open lower after starting the week on a strong footing, as investors awaited key inflation readings for clues on the Federal Reserve's interest-rate path.
WTI and Brent crude oil futures are up in early trading, boosted by a tighter supply outlook, and as OPEC said major economies were faring better than expected despite rising interest rates. OPEC noted in its monthly report that World oil demand will rise by 2.25 million bpd in 2024, compared with growth of 2.44 million bpd in 2023 as forecasts remained unchanged from the month prior. In Libya, a deadly storm led the OPEC member to shut four of its eastern oil export terminals on Saturday. Meanwhile, August U.S. CPI data, due for release on Wednesday, is expected to give some hints on the direction of interest rates in the United States.
Natural gas futures are moving higher for the fourth-consecutive session as the NOAA's 6-10 day outlook shows above-normal temps over the northwestern and north-central US, as well as over southern TX.
BY SECTOR:
US INTEGRATEDS
The next court date in a dispute between Chevron and unions representing workers at its liquefied natural gas facilities is expected to be held on September 22, the office of the president of Australia's industrial umpire the Fair Work Commission told Reuters on Tuesday.
An Australian union alliance said it would oppose Chevron's "intractable bargaining" application with the industrial umpire over ongoing disputes related to wages and conditions at two major liquefied natural gas (LNG) facilities.
INTERNATIONAL INTEGRATEDS
Stellantis' Peugeot has unveiled its new 3008, which is now a fully-electric coupe SUV - or "fastback" - in the hope of extending the success of one of the brand's best-selling fossil-fuel models.
TotalEnergies said that a 1.99 euros per litre cap on fuel prices will be extended at all its petrol stations in France beyond Dec. 31 and "as long as prices remain high".
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Denbury announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"), with respect to the previously-announced agreement for ExxonMobil to acquire all outstanding shares of Denbury at an exchange ratio of 0.84 shares of ExxonMobil for each Denbury share.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
No significant news.
DRILLERS
Seadrill Limited authorized a share repurchase program that allows the Company to repurchase up to $250 million of its outstanding common shares. The Company is not obligated to repurchase any shares under the program. The program has no set time limit.
REFINERS
Unionized refinery workers at Phillips 66's 356,000 barrel per day Wood River refinery in Roxana, Illinois, are preparing to vote on a final contract proposal with the refiner, according to union leaders on Monday.
MLPS & PIPELINES
Greg Ebel, President & Chief Executive Officer of Enbridge announced the following executive leadership changes. Mr. Reggie Hedgebeth has been appointed Executive Vice President, External Affairs & Chief Legal Officer and Ms. Laura Buss Sayavedra has been appointed Senior Vice President, Projects & Chief Administrative Officer, effective January 1, 2024. These appointments follow the decisions of Bob Rooney, Executive Vice President & Chief Legal Officer and Byron Neiles, Executive Vice President & Chief Administrative Officer to step down from their current roles on December 31, 2023. Messrs. Rooney and Neiles will serve as Executive Advisors to Enbridge to support the transition and outstanding projects until their retirement in mid 2024.
MARKET COMMENTARY
U.S. stock index futures dipped, after starting the week on a strong footing, on caution ahead of a crucial inflation reading that could offer clues on when the Federal Reserve is set to wind down its interest-rate hikes. European shares were flat as losses in technology stocks offset gains by healthcare companies, while Germany's biggest software maker SAP fell after U.S. peer Oracle's disappointing revenue forecast. Japanese shares ended nearly 1% higher, with automakers leading the gains, as the yen's retreat from a one-week high lifted exporter stocks and risk appetite. Gold inched lower due to a slight uptick in the dollar, although prices held a narrow range. Oil prices rose, boosted by a tighter supply outlook.
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 Rich Pontillo.
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Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services. 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.
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