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Oil Prices Continue to Perplex Traders

Friday, June1, 2018

Sector Commentary

Energy stocks are poised for a higher start, pulled up by rising U.S. stock future indexes despite declining oil prices, boosted by better than expected jobs data, which overshadowed concerns about trade wars between the US and China as well as Europe.

Oil on both sides of the Atlantic have extended their AM declines, on pace for the second straight week of losses while the USD strengthened. The spread between WTI and Brent crude widened further to new 3+ year highs above $10, doubling in less than a month. Traders worldwide have been struggling to make sense of where oil prices are headed, juggling countervailing signals from major producers Saudi Arabia and Russia on the path for future OPEC supply, against renewed U.S. sanctions on Iran and Venezuela's ongoing economic crisis.

Natural gas futures are flat this morning after posting a 2.5% gain yesterday after a slightly better than expected storage report.


Press Release - Total said that the Annual Shareholders’ Meeting, held on June 1, 2018 under the chairmanship of Patrick Pouyanné, declared a dividend for 2017 of €2.48 per share, an increase of 1.2% compared to the 2016 dividend. Taking into account the three interim dividends of €0.62 per share paid on October 12, 2017, January 11, 2018, and April 9, 2018, the final 2017 dividend to be paid is €0.62 per share. It added the renewal of the terms as Directors of Mrs. Anne-Marie Idrac, Mr. Patrick Pouyanné and Mr. Patrick Artus, for a three-year period.

Reuters - Total has not abandoned plans to drill a basin of the Amazon river after Brazil's environmental agency rejected its application for a license for a fourth time.


(Late Thursday) Press Release - Callon Petroleum announced that it has priced $400 million aggregate principal amount of its 6.375% senior unsecured notes due 2026 in a private offering that is exempt from registration under the Securities Act of 1933, as amended.

(Late Thursday) Press Release - SM Energy announced that it closed the previously announced sales of its remaining assets in the Williston Basin located in Divide County, North Dakota, and third-party operated assets known as Halff East located in Upton County, Texas, for an aggregate of $292.3 million.


Press Release - SEACOR Holdings announced the completion of the Company’s previously announced offer to repurchase its 2.50% Convertible Senior Notes due 2027. No Notes were tendered at or prior to the expiration of the Put Option. As such, no Notes were repurchased by the Company pursuant to the Put Option, and $64,455,000 aggregate principal amount of the Notes remain outstanding.

(Late Thursday) Press Release - SEACOR Holdings announced that CLEANCOR Holdings LLC, a wholly owned subsidiary of the Company, acquired the remaining 50% ownership interest in CLEANCOR Energy Solutions.

Press Release - TechnipFMC announced that, in accordance with Disclosure Guidance and Transparency Rule 5.6, it hereby notifies the market that as of 30 May 2018, the Company’s capital consists 461,437,394 ordinary shares of USD 1.00 each.


Press Release - Energy Transfer Partners announced that Rover Pipeline, LLC received approval from the Federal Energy Regulatory Commission to commence service of the Supply Connector B and full Mainline B pipeline segments. This latest approval allows for 100 percent of Rover’s mainline capacity, 3.25 billion cubic feet per day of natural gas, to be placed into service.

(Late Thursday) Press Release - Enterprise Products Partners and Navigator Holdings announced that construction is now under way on their 50/50 joint venture ethylene export terminal which will be located at Enterprise's Morgan's Point, Texas facility on the Houston Ship Channel.


U.S. stock index futures edged up ahead of the closely watched nonfarm payrolls report for May. A flurry of other economic indicators scheduled for release include ISM’s Manufacturing PMI, construction spending data and vehicle sales figures. European markets rose, while the euro edged higher, after an apparent end to the political crisis in Spain and Italy. Asian shares closed mixed. The U.S. dollar was broadly flat, while gold prices were little changed. U.S. crude was set for a second consecutive week of declines as U.S. oil output levels were close to match that of top producer Russia.


CNBC “Squawk Box” May 31, 2018

Oil price decline 'temporary', says pro

Tamar Essner, Nasdaq Corporate Solutions energy director, provides her outlook on oil as prices decline amid production volatility.

Nasdaq Advisory Services Energy Team Nasdaq's Advisory Services Tamar Essner
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