Oil Prices Minimally Changed Amid Chinese Inflation Data
SECTOR COMMENTARY:
The energy sector is set for a mixed to higher start, steadying along with crude prices and major equity futures as investors await a series of comments from Fed officials and key inflation data for clues on how the Fed might proceed with its rate-hiking campaign. Sector news is light and trading levels are expected to be thin again today.
WTI and Brent crude oil futures were little changed this morning, reeling as Chinese inflation data pointed to persistently weak demand but a softer dollar and hopes that the Federal Reserve might ease up on its policy tightening ahead of key U.S. inflation reports this week, provided support. Traders are also continuing to digest the recent production cuts by OPEC+, the lingering halt in 400K+ bpd of Kurdish barrels and speculation about possible stimulus measures by China.
Natural gas futures extended yesterday’s rally into this morning’s session, gaining amid further short covering while speculation of further price volatility in the near term continues to grow.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
BP produced 4.7 million tonnes of oil in Azerbaijan in the first quarter, from January to March, Baku's energy ministry said on Tuesday.
Harbour Energy and bp announced that they have entered into an agreement to develop the Viking CCS transportation and storage project.
TotalEnergies has accepted an offer from Pacific Avenue Capital Partners for the acquisition of three product lines (Wingtack, PolyBD and Dymalink) developed by Cray Valley, its resin production and sales affiliate. The transaction includes four production sites in the United States, the Cray Valley Italy affiliate and the portfolio of customers.
The Gonfreville refinery in northern France run by TotalEnergies started returning to operation on Tuesday, the company said, marking the last of its four domestic refineries to restart after a month-long strike.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Wells Fargo downgraded Antero Resources to Equal Weight from Overweight.
Truist Securities downgraded EQT to Hold from Buy.
Truist Securities upgraded Murphy Oil to Buy from Hold.
Wells Fargo upgraded Range Resources to Overweight from Equal Weight.
Wells Fargo downgraded Southwestern Energy to Underweight from Equal Weight.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
No significant news.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
Scorpio Tankers announced that it has exercised the purchase options on six ships and that it has repurchased its common shares in the open market.
MARKET COMMENTARY
Wall Street futures edged up as investors awaited inflation data to gauge the Federal Reserve's next policy moves, while caution prevailed ahead of the quarterly earnings season. European shares were in the green, with investors returning from a long holiday weekend to face a week full of crucial economic data that will offer hints to the global interest rate trajectory. Japan’s Nikkei closed higher following dovish comments from the country's new central bank governor. Oil was up on expectations of potential economic stimulus by China, healthy demand in the rest of Asia and a drop in U.S. crude stockpiles. The dollar index was flat, while gold advanced.
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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