Oil Edges Higher as Concerns Over Oil Demand Growth are Balanced by Saudi Output Cuts
SECTOR COMMENTARY:
The energy sector is poised for a mixed to lower start, looking past mild strength in the crude complex and pressured by weakness in the major equity futures. U.S. stock index futures slipped, a day after the benchmark S&P 500 marked a 20% rally from lows, while inflation data and U.S. monetary policy decision due next week kept investors on their toes.
WTI and Brent crude oil futures edged higher in early trading as concern over oil demand growth was balanced by Saudi output cuts. Both benchmarks rebounded from an initial slump yesterday after the U.S. and Iran denied a reportby the Middle East Eye that they were close to a nuclear deal that could have brought Iranian barrels back to the market. Meanwhile, expectations of tighter supply and higher demand as the United States enters the summer holiday season, when more people drive, are being offset by worries over a slow pickup in China's fuel demand.
Natural gas futures are retreating as the NOAA 6-10 day outlook shows below-normal temps in the Southwest, with near to below-normal temps in the East, especially across parts of the coastal Mid-Atlantic region.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
Enbridge’s Woodfibre LNG partnership in British Columbia was on track to enter service in 2027, Cynthia Hansen, president of gas transmission and midstream at the Canadian energy company, said on Thursday.
Halliburton said it would enter into a long-term relationship with Var Energi for drilling services.
TotalEnergies confirmed its commitment to the energy transition in Kazakhstan with the signature of a Power Purchase Agreement (PPA) for the Mirny project. This will be the first PPA signed in the country for a wind project of such scale. Located in the Zhambyl region, the project aims to build a 1 GW onshore wind farm combined with a 600 MWh battery energy storage system for a reliable power supply. It represents an investment of about $1.4 billion. After Irak, it is another prime example of TotalEnergies’ ability to leverage its position as a major partner in the upstream sector to speed up the development of renewable energy in oil and gas countries.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
No significant news.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
Granite announced that its Board of Directors has declared a quarterly cash dividend of $0.13 per common share. The dividend is payable on July 14, 2023, to all shareholders of record at the close of business on June 30, 2023.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
Teekay announced that the Company has repurchased 4.40 million common shares for a total of $25.0 million under its previously-announced $30 million share repurchase program, which equates to an average price of $5.67 per share. Since August 2022, Teekay has repurchased a total of 10.87 million common shares, or 10.7% of the outstanding common shares immediately prior to commencement of the initial share repurchase plan announced in August 2022, for a total cost of $55.0 million, representing an average repurchase price of $5.06 per share.
MARKET COMMENTARY
Wall Street futures edged lower, and European shares dipped as the focus turned to the upcoming week packed with central bank meetings and economic events. In Asian equity markets, Japan's Nikkei ended higher as fixing of the special quotation price relieved investors, while Chinese stocks closed in the green, buoyed by optimism over policy support for automobile and technology sectors. The dollar rose while gold prices eased after a spike in weekly jobless claims raised hopes that a peak in U.S. rates was near. Oil prices were up as concerns over demand growth was balanced by Saudi output cuts.
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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