Inspecting oil drums
Oil

Oil Gains Capped by Surprise Build in U.S. Crude Inventories

WTI and Brent crude oil futures were both up marginally in early trading, lifted by optimism about a U.S.-China trade deal being agreed soon but gains were capped by last night’s API report showing a surprise 3.6 million barrel boost in U.S. crude inventories last week.

SECTOR COMMENTARY

The energy sector is poised for a mixed to higher start, supported by strength in the crude complex and major equity futures which rose as optimism around trade talks continued. Traders will also be looking at a host of crucial domestic economic indicators due out later today.

WTI and Brent crude oil futures were both up marginally in early trading, lifted by optimism about a U.S.-China trade deal being agreed soon but gains were capped by last night’s API report showing a surprise 3.6 million barrel boost in U.S. crude inventories last week. The industry report comes ahead of the EIA data later today which analysts expect to show a 418k barrel draw.

Natural gas futures inched higher this morning, seesawing ahead of the weekly storage report this afternoon which analyst expect to show a draw of 26 Bcf vs the five year average of 57 Bcf.

U.S. INTEGRATEDS

(Late Tuesday) Press Release - ExxonMobil said that Joseph L. Hooley has been elected to its board of directors, effective Jan. 1, 2020. Hooley currently serves as the non-executive board chairman of State Street Corporation and was its chief executive officer from 2010 to 2018. With the election of Hooley, the ExxonMobil board stands at 11 directors, 10 of whom are non-employee directors.

INTERNATIONAL INTEGRATEDS

Press Release - Total Quadran, a wholly owned Total subsidiary involved in the production of renewable electricity in France and its overseas territories, starts up Hélio Boulouparis 2, the largest solar power plant with energy storage in overseas France. The plant is the second tranche of the solar park which is the most extensive solar program ever carried out in New Caledonia. The first tranche, Hélio Boulouparis 1, was put on stream in 2017. Equipped with more than 58,000 solar panels, the plant has installed capacity of nearly 16 megawatts-peak (MWp), enough to cover the energy needs of over 21,000 residents of New Caledonia. The plant will feature a lithium-ion energy storage system (ESS) with a capacity of nearly 10 MW. The combination of a large photovoltaic system with an ESS allows to contribute to improving quality and reliability of the electricity grid for the benefit of the local population.

Press Release - Total Solar Distributed Generation, a wholly-owned subsidiary of Total, will provide solar-powered rooftops to APT Pranoto Airport, located in Samarinda, capital of East Kalimantan province. APT Pranoto will be the first Indonesian airport to be solarized, leading the way towards sustainability.       

U.S. E&PS

(Late Tuesday) Reuters - ConocoPhillips filed a motion in a Delaware court seeking to seize shares in the parent company of U.S. refiner Citgo Petroleum to collect on a $2 billion arbitration award against Venezuela. Citgo, a unit of Venezuelan state oil company, is being targeted by numerous parties seeking payment from Venezuela. But any transfer of its ownership is currently restricted by U.S. sanctions aimed at forcing out socialist President Nicolas Maduro.

(Late Tuesday) Press Release - Murphy Oil announced the early results and early settlement of its previously announced cash tender offers to purchase up to $550 million aggregate principal amount of its outstanding 4.000% Senior Notes due 2022 and 3.700% Senior Notes due 2022.

(Late Tuesday) Press Release - QEP Resources announced that it is soliciting consents from holders of its outstanding senior notes to proposed amendments to the indentures relating to such Notes.

OILFIELD SERVICES                                                           

(Late Tuesday) Press Release - As previously announced, on May 10, 2019, Weatherford International plc, Weatherford International Ltd., and Weatherford International, LLC entered into a Restructuring Support Agreement with certain of the holders of the Company’s outstanding unsecured notes, which was amended on July 1, 2019, further amended on August 23, 2019 and further amended on September 9, 2019. On November 22, 2019, pursuant to Section 11 of the RSA, the Supermajority Noteholders provided written notice of consent to extend the RSA Outside Date from November 30, 2019 until December 6, 2019

REFINERS 

(Late Tuesday) Press Release - Phillips 66 said planned work is currently underway at Rodeo, Calif. Refinery.

MLPS & PIPELINES

Press Release - In preparation for the scheduled retirement of Greg Armstrong as Chairman of the Board at the end of 2019, the board of directors of PAA GP Holdings has carefully considered whether to re-combine the roles of Chairman and CEO following Mr. Armstrong’s retirement. After discussing the matter over the course of several meetings, the Board has concluded that it is in the best interests of the Company at this time to re-combine the roles of Chairman and CEO and establish a strong lead director position.

MARKET COMMENTARY

Wall Street futures were in the green, tracking global shares, after U.S. President Donald Trump said Washington and Beijing were in the “final throes” of inking an initial trade deal. The dollar rose against a basket of major currencies, while spot gold fell. Trade optimism boosted oil prices. On the U.S. economic calendar, the second estimate of third-quarter GDP, durable goods and personal consumption data are due.

NASDAQ ENERGY TEAM THOUGHT LEADERSHIP


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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