Oil Extending Gains For Third Consecutive Session Amid Export Halts From Iraqi Kurdistan
SECTOR COMMENTARY:
The energy sector is set for a higher start, supported by strength in the crude complex and the major market futures. U.S stocks are expected to open higher as concerns about a banking crisis continued to dim and as investors brace themselves for a key inflation reading later this week which will provide more clues on the Fed’s monetary tightening policy.
WTI and Brent crude oil futures are extending gains for the third-consecutive session on export halts from Iraqi Kurdistan which raised concerns of tightening supply. Adding to the crude export halts which were announced on Saturday and amounted to 450,000 bpd, earlier today Norwegian oil firm DNO announced it had begun shutting down production at its fields in Kurdistan. The company’s fields averages output of 107,000 bpd in 2022, which equates to a quarter of Kurdish exports. Oil also gained support from easing concerns of future bank failures and a drop in U.S. crude inventories. The API reported crude stocks fell by 6.1 million barrels last week.
Natural gas futures are trading down on forecasts for warmer temperatures for most locations east of the Rocky Mountains and on high levels of output.
BY SECTOR:
US INTEGRATEDS
QatarEnergy said it signed a deal for stakes in two of ExxonMobil's offshore explorations in Canada as the Qatari state-owned firm builds up its global energy portfolio.
INTERNATIONAL INTEGRATEDS
Saudi Aramco's new refinery deal to buy a 10% stake in private Chinese chemical group Rongsheng Petrochemical includes agreements on crude oil storage in eastern China and the supply of plastics and petrochemicals to the Middle East energy giant.
Brazil's Mines and Energy Ministry requested state-run oil firm Petrobras to reassess a conclusion of the company's former management that there was no reason to suspend already signed sales.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Wind Tre is nearing a deal to sell a majority stake in its infrastructure business to Swedish private equity firm EQT, two sources familiar with the matter said.
SM Energy announced that its Board of Directors approved a quarterly cash dividend of $0.15 per share of common stock outstanding. The dividend will be paid on May 5, 2023, to stockholders of record as of the close of business on April 21, 2023. The Company currently has approximately 120.5 million shares of common stock outstanding, which reflects a reduction of approximately 1.4 million shares from the previously reported quarter that were repurchased by the Company during the first quarter of 2023.
CANADIAN E&PS
TD Securities downgraded Vermillion Energy to Hold from Buy.
Vermilion Energy confirmed the closing of the previously announced sale of non-core assets in southeast Saskatchewan for gross proceeds of $225 million, prior to closing adjustments.
OILFIELD SERVICES
No significant news.
DRILLERS
Canaccord Genuity upgraded Precision Drilling to Buy from Hold.
Precision Drilling announced it has released its 2022 Environmental, Social and Governance (ESG) performance data, which aligns with the Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD) and Global Reporting Initiative (GRI) frameworks.
Transocean announced contract fixtures for two of its harsh environment semisubmersibles. Together, the fixtures represent approximately $113 million in firm contract backlog.
Transocean announced harsh environment contract awards totaling $382 million with Equinor.
REFINERS
Goldman Sachs upgraded Marathon Petroleum Corp to Buy from Neutral.
Goldman Sachs downgraded Delek US Holdings to Neutral from Buy.
MLPS & PIPELINES
Credits Suisse upgraded Enbridge to Neutral from Underperform.
MARKET COMMENTARY
Easing concerns over the banking sector revived risk appetite pushing Wall Street indexes higher. European shares rose on the news of a strong outlook from chipmaker Infineon and a CEO change at Swiss bank UBS. Asian shares ended in the positive territory, aided by the surprise move from Alibaba to split into six units. The dollar edged up, while gold slipped. Oil gained as a halt to some exports from Iraqi Kurdistan raised concerns of tightening supply. On the economic front, pending home sales data is due for release later in the day.
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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