Oil Higher On Concerns Over Tight Supply
SECTOR COMMENTARY:
The energy sector is set for a higher start, supported by strength in oil futures, while U.S futures are lower as negotiations between the White House and the Republican representatives continue, with no clear compromise in site.
WTI and Brent crude oil futures are higher on concerns over tight supply and as investors digest a warning from the Saudi Energy minister who raised the prospect of further OPEC+ cuts. According to the API, crude inventories fell about 6.8 million barrels last week, in-line with gasoline inventories which dropped 6.4 million barrels. The market will be keeping an eye on EIA data to confirm these inventory levels which would mark a third-consecutive week of falling gasoline inventories.
Natural gas futures are higher, attempting to end a 3-day losing streak driven by bearish weather forecasts and higher production. Consensus for EIA weekly storage data due tomorrow has a build of +102 Bcf vs the 5-year average of +96 Bcf.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
Brazilian state-run oil company Petrobras said it will file this week an appeal against environmental agency Ibama's decision of blocking it from drilling a well at the mouth of the Amazon river.
As part of its commitment to identify, quantify and reduce methane emissions linked to its operations, TotalEnergies is partnering with Colorado State University to develop an international protocol for the qualification of methane emissions measurements.
TotalEnergies has acquired a 20% stake in Ductor, a Finland-based start-up that has developed an innovative technology to process high-nitrogen organic waste, such as poultry manure, which is usually difficult to use for biomethane production. By allowing the treatment of new types of input, this technology is helping to accelerate the development of the biogas value chain, thus contributing to the energy transition. It will also enable TotalEnergies to seize new market opportunities.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
The board of directors of APA has declared a regular cash dividend on the company's common shares.
Mizuho downgraded PDC Energy to Neutral from Buy.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
No significant news.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
No significant news.
MARKET COMMENTARY
U.S. stock index futures slipped as there was no sign of a breakthrough in debt ceiling talks between the White House and the Republicans. European shares dragged down by losses in heavyweight luxury names and Japan's Nikkei fell for the second day as investors booked profits. Oil prices rose after a warning from the Saudi energy minister along with a dip in U.S. stockpiles. The dollar edged higher, while gold fell. Minutes from the Federal Reserve's May 2-3 meeting is due 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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