Oil Prices Dip After Fed Chair Powell Highlighted Banking Sector Credit Risks
SECTOR COMMENTARY:
Energy stocks are set to open higher, tracking stronger broader index futures, which are set to rebound after yesterday’s sell-off following the FOMC’s decision to raise rates another quarter point. News flow is light across the sector, other than a handful of recommendation changes from Citi in the E&P space. Oil and natural gas prices are in the red.
Oil prices dipped on Thursday, having hit their lowest since late 2021 earlier this week, after Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world's largest economy, while U.S. crude stockpiles swelled. Powell said on Wednesday that banking industry stress could trigger a credit crunch, with "significant" implications for an economy that U.S. central bank officials projected would slow even more this year than previously thought. U.S. crude oil stockpiles rose unexpectedly last week to their highest in nearly two years, latest data from the EIA showed.
U.S. natural gas futures rose about 2% on Thursday after collapsing 8% in the prior session as the amount of gas flowing to LNG export plants remains on track to hit a record high this month after Freeport LNG's plant in Texas exited an eight-month outage in February.
BY SECTOR:
US INTEGRATEDS
According to headlines, 37% of operational staff at Total Energies' refineries and depots are on strike.
INTERNATIONAL INTEGRATEDS
Aramco has signed a non-binding Memorandum of Understanding (MoU) with Samsung Electronics Co., Ltd., which sets forth preliminary plans for a strategic collaboration that would localize an industrial 5G technology ecosystem, starting with private networks, in Saudi Arabia.
BP considered buying the remaining 50% stake in Lightsource BP (LSBP), its solar power joint venture, as part of the British giant's drive to build up its renewable energy capacity, three industry and company sources said.
Petrobras said that its board elected Sergio Caetano Leite as the company's next finance chief while tapping Joelson Falcao as head of exploration and production.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Citigroup upgraded Marathon Oil to Buy from Neutral and Pioneer Natural Resources to Buy from Neutral and downgraded Ovintiv to a Neutral from Buy.
KeyBanc initiated Talos Energy with an Overweight.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
KBR announced that it has acquired Acetica, an acetic acid production technology, which expands KBR's petrochemicals value chain through a profitable pathway for CO2 utilization.
Raymond James initiated Select Energy with a Strong Buy.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
No significant news.
MARKET COMMENTARY
Wall Street futures climbed, a day after the Federal Reserve hinted it was close to pausing its market-punishing interest rate hikes following the recent turmoil in the banking sector. European equities fell with lenders leading declines while Japan's Nikkei share average closed lower. Gold prices extended gains as the dollar headed for its longest losing streak in 2-1/2 years. Oil prices dipped as U.S. crude stockpiles swelled.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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