Oil Prices Lower, Erasing Yesterday’s Gains
SECTOR COMMENTARY:
The energy sector is poised for a lower start, pressured by weakness in the underlying commodities and in the major equity futures. U.S. stock index futures turned lower as investors remained wary about a potential banking crisis despite a lifeline to troubled regional lender First Republic Bank from the country's largest banks.
WTI and Brent crude oil futures turned lower this morning, erasing yesterday’s gains and putting futures on pace for their biggest weekly decline in almost a year. Lingering turmoil in the banking sector continues to dampen confidence and drive investors out of riskier assets. The oil market, however, is drawing some support from weakness in the dollar and the meeting of Saudi Arabia and Russia’s OPEC+ chiefs to discuss efforts by the group to “promote market balance and stability.” The dollar fell on by expectations of less aggressive increase to interest rates by the U.S. Federal Reserve next week.
Natural gas futures are down in early trading with weakness appearing to come more from a broader "risk-off" market with overnight forecasts roughly unchanged.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
Eni announced a new discovery on the Yatzil exploration prospect in Block 7, located in the mid-deep water of the Cuenca Salina in the Sureste Basin, offshore Mexico. According to preliminary estimates, the new finding may contain around 200 million barrels of oil (MBoe) in place.
Repsol has decided against developing a liquefied natural gas (LNG) terminal on Canada's east cost because it would cost too much to ship the gas to the terminal, the company said on Thursday.
CANADIAN INTEGRATEDS
Suncor Energy announced that the agreement dated July 16, 2022 with Elliott Investment Management L.P. (together with its affiliates "Elliott"), as amended, has been further amended by the agreement of the parties to extend the right for Elliott to appoint an additional director to the board of Suncor from March 17, 2023 to March 31, 2023.
U.S. E&PS
Global Switch is still in talks with private equity firm EQT about a sale, three people with knowledge of the deal told Reuters.
RANGE RESOURCES announced that, after almost 20 years of service which included the discovery and development of the Marcellus Shale field, Jeff Ventura plans to retire from the Company effective June 2, 2023 and will not seek reelection to the Board. Range’s Board of Directors has selected Dennis Degner, the Company’s Executive Vice President and Chief Operating Officer to assume the role of President and Chief Executive Officer effective at the Company’s annual shareholder meeting May 10, 2023. In addition, Mr. Degner will be nominated for election to the Company’s Board of Directors.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
KBR announced that CVR Energy, Inc.'s Board of Directors has approved the next phase of the revamp of the alkylation unit at its subsidiary's crude oil refinery located in Wynnewood, Oklahoma.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
No significant news.
MARKET COMMENTARY
U.S. stock index futures struggled for direction as investors remained wary about a potential banking crisis despite a lifeline to troubled regional lender First Republic Bank from the country's largest banks. European shares and Japan's Nikkei extended a rebound as supportive measures in the United States and Europe calmed fears. Oil prices firmed after a meeting between Saudi Arabia and Russia calmed markets amid strong China demand expectations. The U.S. dollar slipped while gold edged up.
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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