Oil Prices Fall to Two-Week Lows on Inflation Concerns
Energy stocks are set to open lower by approximately 2%, tracking weaker broader index futures, which are also expected to open down around 2%. News flow is light across the sector, with stocks expected to track broader equities and oil lower in unison. This comes after the Fed raised rates 75 basis points yesterday in an attempt to curtail runaway inflation.
Oil prices erased early gains to fall to two-week lows on Thursday on the back of inflation concerns highlighted by interest rate hikes in the United States, Britain and Switzerland, though tight oil supply limited losses. Prices slipped more than 2% overnight after the Federal Reserve raised its key interest rate by 0.75%, the biggest hike since 1994. "Concerns about global inflation are growing. As a result, the dollar is stronger and European equities are falling, bringing oil down with them," PVM analyst Tamas Varga said.
Natural gas futures are recovering, up approximately 5%, to $7.80. Weekly inventory data due out this morning expects a build of 91 bcf.
BY SECTOR:
US INTEGRATEDS
Chevron has awarded Worley a ten-year global master services agreement to provide services to Chevron’s upstream, midstream, and downstream assets including project development for onshore and offshore assets. Under the agreement, Worley will provide engineering and project related services including working with Chevron’s digital enablement specialists to optimize ways of working and improve efficiencies.
INTERNATIONAL INTEGRATEDS
EIG announced it has signed a memorandum of understanding with Aramco to collaborate on future energy projects. Under the terms of the MoU, the parties will look to pursue investment opportunities in projects that advance their shared sustainability objectives, including in existing and new technologies such as alternative fuels, carbon capture, hydrogen and natural gas, transportation, and energy storage.
Eni said that it would receive only 65% of the gas supply volumes it had requested from Russia's Gazprom after experiencing a shortfall the previous day.
Equinor has signed a Letter of Intent (LOI) with the 3D print start-up Korall Engineering based in Bergen, Norway. This is a result of this year's Equinor & Techstars Energy Accelerator programme.
Equinor and Centrica have announced an agreement to deliver additional gas supplies to the UK. The supply agreement will provide further energy security for the UK over the coming three winters. The new supply agreement adds around 1 billion cubic meters (bcm) per year to Equinor's existing, bilateral contract with Centrica and brings the total volume under the contract above 10 bcm per year.
Petrobras informed that the company Grepar Participações Ltda., which entered into an agreement with Petrobras for the sale of the Lubrificantes e Derivados de Petróleo do Nordeste (LUBNOR) refinery and its associated logistics assets, sent a notification informing changes in its corporate structure. With the notified change, Grecor Investimentos em Participações Societárias Ltda. will keep its 50% participation and Greca Distribuidora de Asfaltos Ltda. will hold the other 50% of Grepar's capital.
Shell is building larger vessels that can carry more carbon dioxide over longer distances as part of the company's plans to expand its carbon capture storage (CCS) business globally, the oil major said.
TotalEnergies has completed a rooftop-mounted solar system for Golden Victory Vietnam Co., Ltd., one of the biggest shoes and footwear manufacturers and a key supplier for globally renowned sportwear brands, to power the needs of the company's production buildings in Nam Dinh Province, Vietnam.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
According to Reuters, ConocoPhillips made a minor gas discovery in the Norwegian Sea, Norway's NPD said.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
Baker Hughes stopped servicing LNG projects in Russia, the Kommersant daily said, citing sources.
Centennial Asphalt Company, a wholly owned subsidiary of Granite, has completed the purchase of a liquid asphalt terminal. The facility, located in Bakersfield, California, provides 170,000 barrels of liquid asphalt storage.
Secure Energy Services announced that its Board of Directors has declared a quarterly dividend of $0.0075 (0.75 cents) per common share payable on or about July 15, 2022, to shareholders of record on July 1, 2022.
Secure Energy Services announced that Michael Colodner, a member of the Board of Directors of the Corporation has resigned from the Board effective June 15, 2022 for reasons unrelated to SECURE in order to pursue other business endeavours.
As per SEC filing, Weatherford International filed for a potential mixed shelf offering. The size was not disclosed.
DRILLERS
Seadrill announced that the Company has received the resignation of Karen Boesen as a director. The resignation is effective 17 June 2022. Ms. Boesen informed the Company that she had no disagreement with the Company on any matter, including its business, strategic initiatives, policies or practices.
REFINERS
No significant news.
MLPS & PIPELINES
No significant news.
MARKET COMMENTARY
U.S. stock index futures fell sharply as fears of a recession grew after the Federal Reserve's biggest rate hike in nearly three decades. European stocks tumbled after a surprise interest rate hike from Swiss National Bank which fuelled fresh worries about the impact of inflation on the global economy. In Asian equity markets, Japan's Nikkei and Chinese shares ended lower. The dollar dipped, while gold prices were mixed.
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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