Oil pumpjacks in a desert landscape
Oil

Oil Prices Down Ahead of OPEC+ Meetings, Ongoing Iran Talks

Energy stocks are poised for a muted start as oil prices and the broader index futures trade near the flat line in early trading. Company news is quiet and volume levels should remain low this week ahead of the Fourth of July holiday. 

SECTOR COMMENTARY:

Energy stocks are poised for a muted start as oil prices and the broader index futures trade near the flat line in early trading. Company news is quiet and volume levels should remain low this week ahead of the Fourth of July holiday. 

Oil prices on both sides of the Atlantic are slightly lower to start off what should be a busy week with OPEC+ meetings beginning tomorrow and U.S. talks with Iran were expected to enter their 7th round. Dampening sentiment over the weekend, Australia reported one of the highest numbers of locally acquired coronavirus cases this year, triggering lockdowns in some cities. 

Natural gas futures are higher by ~2% at $3.586, to new multi-year high. Gas on Friday closed above $3.50/mmbtu during the month of June for the first time in seven years. Meanwhile, record heat in the Northwest is expected to persist through tomorrow with several locations topping 110 degrees. Temps in the Northeast are expected to push firmly into the 90's through Wednesday. The July contract, currently at $3.560, expires this afternoon.

US INTEGRATEDS

No significant news.

INTERNATIONAL INTEGRATEDS

No significant news.

CANADIAN INTEGRATEDS

No significant news.        

U.S. E&PS

No significant news.

CANADIAN E&PS

No significant news.

OILFIELD SERVICES

Baker Hughes has announced an investment in Electrochaea, a growth stage company developing novel proprietary bio-methanation technology. Through its investment, Baker Hughes will enhance its broader carbon capture and utilization (CCU) portfolio and provide an integrated solution for customers across the carbon dioxide (CO2) value chain to enable the production of low carbon synthetic natural gas (SNG) from captured CO2 and green hydrogen, helping meet demand for cleaner fuels to advance the energy transition.

KBR announced that it has been awarded a contract by Raízen Argentina for modernizing the Fluid Catalytic Cracking (FCC) unit at its Buenos Aires Refinery.

Petrofac issued the following pre-close update for the six months ending 30 June 2021: Trading overall in line with expectations; Strong growth in the EPS division and new energies; Continuing impact of Covid-19 on E&C project schedules.

PGS has been awarded a significant 4D acquisition contract by ExxonMobil for work offshore Guyana. A Titan class vessel is scheduled to mobilize for the project in Q4 2021 and acquisition is planned to be completed in Q1 2022.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

No significant news.

MARKET COMMENTARY

Wall Street futures were muted as investors held off from making big bets awaiting clues on the U.S. labor market recovery and corporate earnings this week. European stocks slipped on the back of a spike in COVID-19 cases across Asia and worries of a sudden tapering in ultra-loose global monetary policy in the wake of rising inflation. Japan's benchmark Nikkei index ended flat, weighed down by chip-related stocks tracking a muted Nasdaq trade in the previous session. Gold traded in a tight range as investors remained on the sidelines given the Fed's mixed signals on policy tightening, although a weaker dollar limited losses for the metal. Oil prices dipped after hitting more than 2-1/2 year highs earlier in the session, as a spike in COVID-19 cases in Asia put a brake on rally before this week's OPEC+ meeting.

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


This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MarketInsite

Nasdaq’s Marketinsite offers actionable insights on a variety of market-moving topics. Learn from our thought leaders who are driving the capital markets of tomorrow.

Read MarketInsite's Bio