Oil
Oil

Oil Prices Dip Amid Big Drop in U.S. Crude Oil Inventories

Oil prices dipped, but losses were limited by a big drop in U.S. crude oil inventories.

SECTOR COMMENTARY:

Energy stocks are set to open lower, tracking broader index futures, as equities continued to retrench after the Federal Reserve sent a more hawkish tone at its latest meeting yesterday.  Corporate news flow is light today.

Oil prices dipped, but losses were limited by a big drop in U.S. crude oil inventories. Data from the EIA showed that U.S. crude oil stockpiles in the world's biggest consumer dropped sharply last week as refineries boosted operations to their highest since January 2020, signaling continued improvement in demand.

Natural gas futures were lower ahead of weekly inventory data, with analysts expecting a build of 73 bcf.

US INTEGRATEDS 

No significant news.

INTERNATIONAL INTEGRATEDS

Eni, through its subsidiary Eni Indonesia, signed a Memorandum of Understanding with SKK Migas for cooperation on exploration activities in Indonesia. The MoU defines the framework for further cooperation in the processing and interpretation of seismic data owned by the Republic of Indonesia by using Eni's proprietary technologies and facilities, including the Green Data Centre supercomputers in Ferrera Erbognone, Italy, as well as seismic imaging algorithms.

CANADIAN INTEGRATEDS

Suncor advised that the co-owners of the Terra Nova Floating, Production, Storage and Offloading facility and associated Terra Nova Field have reached an agreement in principle to restructure the project ownership and provide short-term funding towards continuing the development of the Asset Life Extension Project, with the intent to move to a sanction decision in the Fall. A subset of owners will increase their ownership of the project for consideration payable from the other owners. Suncor’s ownership will increase to 48% from approximately 38%.

U.S. E&PS 

Continental Resources announces Eric S. Eissenstat has elected to retire from his position as Sr. Vice President, General Counsel, Chief Risk Officer and Secretary to return to private practice where he will work on access to justice and community service matters and provide high quality legal services to clients, including Continental Resources. Pursuant to a managed transition, Jim Webb will assume the position as Sr. Vice President, General Counsel, Chief Risk officer and Secretary effective September 1, 2021.

Northern Oil and Gas announced that it has entered into three definitive agreements to acquire non-operated interests across approximately 2,900 net acres located in the heart of Reeves County, Texas and Lea and Eddy Counties, New Mexico for a combined purchase price of $102.2 million. 

Northern Oil and Gas announced that it has commenced an underwritten public offering of 5,000,000 shares of its common stock. The Company intends to grant the underwriters a 30-day option to purchase up to an additional 750,000 shares of its common stock. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering.

CANADIAN E&PS

Enerplus files for mixed shelf of up to C$2 billion, according to SEC filing

MEG Energy announced that at its annual meeting of shareholders held on June 16, 2021, each of the ten nominees listed in its Management Information Circular dated May 3, 2021, were elected as directors.

OILFIELD SERVICES 

KBR and Mura Technology announced the first joint contract award for its plastics recycling technology, Hydro-PRT℠, with Mitsubishi Chemical Corporation (MCC) in Japan. 

Trican Well Service announced that Michael Rapps will resign as a member of the Board of Directors of Trican effective June 18, 2021 to focus on his role as Managing Partner of Converium Capital. Mr. Rapps has served as a member of the Board since May 2019, and is a member of the Audit Committee and the Human Resources and Compensation Committee.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

Credit Suisse upgraded Enbridge to Outperform from Neutral.

Credit Suisse downgraded Keyera to Neutral from Outperform.

Pembina Pipeline and TC Energy are pleased to share their plan to jointly develop a world-scale carbon transportation and sequestration system which, when fully constructed, will be capable of transporting more than 20 million tonnes of CO2 annually. By leveraging existing pipelines and a newly developed sequestration hub, the Alberta Carbon Grid represents the infrastructure platform needed for Alberta-based industries to effectively manage their emissions and contribute positively to Alberta's lower-carbon economy and create sustainable long-term value for Pembina and TC Energy stakeholders.

MARKET COMMENTARY

Futures for U.S. stock indexes and European equities fell after the U.S. Federal Reserve startled investors by signalling it might raise interest rates at a much faster pace than assumed, sending bond yields and the dollar sharply higher. Chinese equities, meanwhile, rose after three straight sessions of losses, as subdued factory output data eased fears of policy tightening in the world's second-largest economy, while Japanese shares closed lower as investors sold off technology and drug stocks following Wall Street's weak finish in the previous session. Gold hit to its lowest in more than a month.  Weekly jobless claims rose 37,000 to 412,000.

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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