Oil

Oil Prices Fall After Leading OPEC Producers Reach Compromise Deal

Oil pumpjacks in a desert landscape
Credit: Shutterstock photo

SECTOR COMMENTARY:

Energy stocks are set to open lower, tracking weaker broader index futures and further declines in oil prices.

Oil prices fell on Thursday, extending losses as investors braced for increased supplies after a compromise deal between leading OPEC producers and as U.S. fuel stocks rose, raising concerns over demand in the world's largest consumer.

Natural gas futures slipped to a fresh one-week low on Thursday on forecasts for less hot weather and lower air conditioning demand over the next two weeks than previously expected.

BY SECTOR: 

US INTEGRATEDS

No significant news.

INTERNATIONAL INTEGRATEDS

According to ReutersPetrobras has finalized the sale of its Polo Rio Ventura onshore oil assets to a subsidiary of 3R Petroleum Oleo e Gas SA, the companies said in separate securities filings on Wednesday.

Repsol hired Santander to help find partners for its low-carbon business ahead of a potential public listing, Expansion newspaper reported on Thursday, citing unnamed sources. The company plans to find a partner or partners for each of its renewable assets to help boost their market value, Expansion said.

CANADIAN INTEGRATEDS

No significant news.

U.S. E&PS

Scotiabank downgraded Cimarex Energy to Sector Underperform from Sector Perform and EOG Resources to Sector Perform from Sector Outperform.

MKM Partners upgraded Continental Resources to Buy from Neutral.

CANADIAN E&PS

No significant news.

OILFIELD SERVICES

Seaport Research Partners initiated coverage of Baker Hughes and NOV with Buy ratings.

Halliburton announced that it won a contract to provide Production Chemicals and Associated Services for a large IOC in Oman. Under the seven-year contract, Halliburton will supply a full suite of customized products along with specialized services to support the in-field chemical treatments.

Toromont Industries announced that after 36 years of dedicated service (34 as Chairman and 20 as CEO), Mr. Robert M. Ogilvie will retire as both Chairman and Director of the Board of Directors effective July 15, 2021. The Toromont Industries Board of Directors announced the appointment of Mr. Richard G. Roy to the position of Chairman effective immediately.

DRILLERS 

Seaport Research Partners initiated coverage of Dril-Quip and Helmerich and Paynewith Neutral ratings.

REFINERS 

Scotiabank downgraded CVR Energy to Sector Underperform from Sector Perform.

The board of directors of Phillips 66 declared a quarterly dividend of 90 cents per share on Phillips 66 common stock. The dividend is payable on Sept. 1, 2021, to shareholders of record as of the close of business on Aug. 18, 2021.

The board of directors of Phillips 66 appointed Denise R. Cade and Douglas T. Terreson to serve as independent directors, effective July 14, 2021. Following the appointments, the board of Phillips 66 will comprise 11 directors, 10 of whom are independent.

MLPS & PIPELINES

Brooge Energy announced that its wholly owned subsidiary, Brooge Petroleum and Gas Investment Company FZE applied for a permit to commence testing and commissioning for its Phase II storage facility, the final step in order to secure regulatory approval to open the facility. Phase II is fully contracted, and the Company has already commenced receipt of advanced income for Phase II storage fees, which are anticipated to contribute to its revenues in the second half of 2021.

According to Reuters, Brookfield Infrastructure Partners raised its offer for Inter Pipeline to about C$8.58 billion ($6.85 billion) as it looks to compete with a rival bid from Pembina Pipeline. Pembina has made an all-stock bid of about C$8.3 billion ($6.71 billion), while Brookfield had offered C$8.48 billion, with an all-cash option.

MARKET COMMENTARY

Equities are set to open lower. European shares fell for a second straight session as lower crude prices hit oil stocks. China stocks closed higher as investors cheered better-than-expected retail sales in June, while Japanese shares ended lower on caution ahead of corporate earnings season and a surge in COVID-19 cases a week before the Tokyo Olympics begins. The dollar held steady against its major peers. Gold prices were little changed.

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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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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