Oil Prices Head for Weekly Loss With Rising Virus Cases Worldwide
SECTOR COMMENTARY:
Energy stocks are poised for a mixed start, as commodity prices and the broader index futures trade near the flat line following yesterday’s sell-off on concerns the White House could seek a hike in capital gains tax. Earnings continue to roll in and shares of Schlumberger rose ~1.4% in the pre-market after the company reported better-than-expected profit and revenue on improved international drilling activity.
Oil prices are roughly unchanged this morning and on pace for a down week. Early price action has been aided by record PMI prints and vaccine progress out of Europe although COVID developments in India and parts of Asia continue to be a headwind. India broke another one-day record case tally at 332,320, while Japan is reimposing a state of emergency to curb infections in Tokyo and Osaka.
Natural gas futures are lower in early trading following yesterday’s strength supported by a lower-than-expected weekly injection report. The 6 to 10-day forecast calls for above-seasonal temperatures east of the Rockies, below-seasonal temperatures in the Pacific Northwest and seasonal temperatures in the SW stretching northeast to the Dakotas. 8-14 forecast projects above-seasonal temperatures east of the Mississippi River and lower southwest, and seasonal temperatures along the Rockies and Plains.
No significant news.
According to Reuters, Equinor and its partners have decided to invest 7.9 billion Norwegian crowns ($947 million) to connect more offshore platforms at the Troll field to Norway's onshore grid to reduce carbon dioxide emissions, the company said.Equinor's partners in the Troll field are ConocoPhillips, Total, Shell and Petoro.
No significant news.
Raymond James upgraded Cimarex Energy to Strong Buy from Outperform.
Raymond James upgraded Continental Resources to Outperform from Market Perform.
Raymond James downgraded Range Resources to Underperform from Market Perform.
SandRidge Energy announced the acquisition of all the overriding royalty interest assets of SandRidge Mississippian Trust I. The gross purchase price is $4.85 million (net $3.55 million, given the Company's 26.9% ownership of the Trust). At the current strip and based on historical production trends, the Company believes the Acquisition represents an attractive price-to-value, approximating PDP PV-55 and a 2-year cash-on-cash payback.
Raymond James downgraded Southwestern Energy to Underperform from Market Perform.
No significant news.
Kepler Cheuvreux downgraded PGS ASA to Reduce from Hold.
Schlumberger reported results for the first-quarter 2021. Worldwide revenue was $5.2 billion. International revenue was $4.2 billion and North America revenue was $972 million. EPS was $0.21. In addition, on April 22, 2021, Schlumberger’s Board of Directors approved a quarterly cash dividend of $0.125 per share of outstanding common stock, payable on July 8, 2021 to stockholders of record on June 2, 2021.
No significant news.
No significant news.
UBS upgraded Enlink Midstream to ‘Buy’ from ‘Neutral’
Wall Street futures were slightly higher, after the indexes ended lower in the previous session following President Biden’s plan to double capital gains tax. European stocks dropped as a surge in COVID-19 cases offset optimism about a strong earnings season. Asian equities ended on a mixed note, while Japan’s Nikkei closed in the red. The dollar traded lower ahead of the U.S. Federal Reserve meeting next week, while gold prices rose. Oil edged up on optimism over recovery of European economic growth. The U.S. business activity data for April is on the economic calendar.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- 1/8/20 – CNBC’s Squawk Alley: Oil market reaction to US-Iran tensions
- 1/8/20 – Bloomberg Day Break – Steady escalation of US-Iran tensions
- 12/5/19 – Bloomberg Balance of Power – OPEC's Limited Efficacy
- 9/17/19 – Oil's New Risk Premium Discussion on CNBC TV
- 9/16/19 – Discussion on Bloomberg TV about Impact of Abqaiq Attack
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.
Other Topics
Energy Commodities Nasdaq Advisory Services
MarketInsite
Nasdaq
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