Oil Prices Fall as Concerns that Demand for Fuel Will be Held Back by Major Central Banks
SECTOR COMMENTARY:
Energy stocks are set to open Tuesday’s session on a down note, tracking weaker broader index benchmarks and lower oil and natural gas prices. Rates are down slightly today, with the 10-year back below 4.5%, but is still being viewed by market participants as elevated relative to the low interest rate environment over the past decade and a half. "There is a growing sense of despondency that rates will not come down any time soon, and that they will remain in restrictive territory for an extended period, hampering growth and making for a more difficult economic environment for companies to operate in," said Stuart Cole, chief macro economist at Equiti Capital.
Oil prices fell on Tuesday as a stronger U.S. dollar compounded concerns that demand for fuel will be held back by major central banks holding interest rates higher for longer. "Fears of an economic recession may again dominate the oil market’s movement due to surging U.S. bond yields following the Fed’s hawkish stance last week," said Tina Teng, a market analyst at CMC Markets in Auckland.
October natural gas futures are off by 2%, trading just below $2.60, while the November contract is trading around $2.80. October futures expire at the close tomorrow. Traders are watching feedgas flows and above normal forecasts for the next week and a half.
BY SECTOR:
US INTEGRATEDS
Blackcurrant, a marketplace to help accelerate low carbon fuel adoption by simplifying transactions and lowering costs, has been selected by Chevron Technology Ventures, LLC (CTV) as part of its Catalyst Program.
INTERNATIONAL INTEGRATEDS
Eni was the big winner in an Egyptian auction for oil and gas exploration rights on Tuesday, securing concessions for two of the four blocks outright, according to results from the petroleum ministry. The company also won a third block with BP and QatarEnergy in the Mediterranean Sea, while Russia's Zarubezhneft was awarded a block in the Nile Delta.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
No significant news.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
No significant news.
DRILLERS
Seadrill initiated a share repurchase program September 12, 2023 to repurchase up to $250 million of the Company’s common shares in open market transactions on the OSE and NYSE through March 31, 2024 pursuant to an agreement with Arctic Securities AS and its subsidiary, Arctic Securities LLC.
Transocean announced that Transocean Aquila, a wholly owned indirect subsidiary of Transocean Ltd., commenced a private offering of U.S. $300 million in aggregate principal amount of senior secured notes due 2028 to eligible purchasers pursuant to Rule 144A/Regulation S.
REFINERS
No significant news.
MLPS & PIPELINES
A recent C$4.6 billion capital raise by Enbridge and a raft of new U.S. deals have spurred optimism for a revival in Canadian equity capital markets (ECM) issuance, bankers and lawyers said. Enbridge's jumbo equity sale to finance a portion of its acquisition of three utilities from Dominion Energy propelled Canadian ECM issuance to a two-year high of C$6.7 billion ($5 billion) in the third quarter of this year, according to data from Refinitiv.
Energy Transfer and Crestwood Equity Partners announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), in connection with Energy Transfer’s pending acquisition of Crestwood.
On September 25, 2023, Otter Merger Sub, wholly owned, direct,subsidiary of ONEOK, completed its merger with and into Magellan Midstream Partners, as a result of which Magellan became a wholly owned, direct, subsidiary of the Company. The Merger was effected pursuant to the Agreement and Plan of Merger, dated May 14, 2023, by and among the Company, Merger Sub and Magellan.
MARKET COMMENTARY
U.S. stock index futures dipped as investors remained on the edge about the Federal Reserve's monetary policy and the consequent impact on economy. European equities tracked Wall Street, as technology stocks took the hit from elevated bond yields. Japan's Nikkei share average ended lower, dragged by the decline in heavyweight chip-related shares. Gold prices slipped, as the dollar scaled a new 10-month peak.
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 Rich Pontillo.
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.
Other Topics
Energy Commodities
Nasdaq Energy News
Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services. 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.
Read Nasdaq Energy News' Bio