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Oil Prices Trade Off Of Morning Highs

Monday, August 27, 2018

Sector Commentary

Energy stocks are poised for a higher start, backed by strength in U.S. stock index futures which rose as news that the United States and Mexico were closing in on a trade deal which added to optimism about the economy and while oil prices trade off of morning highs.

Shares of oil and gas producer Eclipse Resources are down heavily after saying it would buy larger rival Blue Ridge Mountain Resources in a $1.4 billion in an all-stock deal.

Oil prices on both sides of the Atlantic are trading in the green, but have eased off of their highs on concerns the U.S.-China trade dispute will erode global economic growth, and ahead of a conference call between members of a committee monitoring an OPEC and non-OPEC deal on output cuts. "Falling U.S. rig counts and last week's decline in U.S. inventories are supporting oil prices amid a protracted U.S.-China trade war that could dampen global growth and weigh on oil demand," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

Natural gas futures fell as preliminary estimates for storage expect an injection of +71 Bcf vs the 5 year average of +59 Bcf, which would be the first weekly build higher than the 5 year average in eight weeks.

US INTEGRATEDS

Reuters - Chevron estimated 2018 oil production in Indonesia at 218,300 barrels per day, lower than 247,300 bpd in 2017, company data distributed to a parliamentary committee on Monday showed.

Reuters - Pertamina has sold 1 million barrels of Iraqi Basra Heavy crude loading at end-September to Chevron .

Reuters - ExxonMobil said it has commenced a A$120 million ($88 million) offshore exploration drilling off Australia's southeast coast to search for new sources of natural gas.

(Late Friday) Reuters - Exxon Mobil has been looking to buy renewable energy for delivery in Texas.

INTERNATIONAL INTEGRATEDS

Reuters - Equinor expects to award more contracts for troll phase 3 development in autumn. The company's troll phase 3 development to prolong the field's gas output plateau by 5-7 years when it starts producing in 2021.

Reuters - Equinor increased its resource estimate for the Johan Sverdrup oilfield, the North Sea's largest discovery in more than three decades, while cutting the cost of development.

(Late Friday) Reuters - Petrobras will increase imports of diesel and aviation fuel as the restart of fire-hit Replan refinery was postponed to next week.

Reuters - Royal Dutch Shell restarted the gasoline-producing Fluidic Catalytic Cracking Unit and the hydrocracking unit at its 209,787 barrel-per-day Convent, Louisiana, refinery over the weekend.

Reuters - Total is not looking at investing in the U.S. shale oil industry when asked whether peer BP 's $10.5 billion acquisition of U.S. shale assets from BHP Billiton had made that sector more attractive.

Press Release - Total has signed a binding Letter of Intent with Shell for the sale of its 26% minority equity stake in Hazira LNG regasification terminal in India. The transaction remains subject to the approval of regulatory authorities.

U.S. E&PS

(Late Friday) Reuters - California Resources said on Aug 21, board voted to increase the size to 10 members and elected Laurie Siegelto fill resulting vacancy.

Press Release - Eclipse Resources and Blue Ridge Mountain Resources announced that they have entered into a definitive merger agreement under which Eclipse Resources and Blue Ridge will combine in an all-stock transaction.

MLPS & PIPELINES

(Late Friday) Reuters - On August 24, 2018, Bryan F. Bulawa resigned as Senior Vice President and Chief Financial Officer of Enterprise Products Holdings LLC, the general partner of Enterprise Products Partners L.P. , effective immediately. The Partnership and Mr. Bulawa remain in discussions with respect to the terms of his departure.

MARKET COMMENTARY

World stocks rose to their highest level in over two weeks on Monday, following reassuring comments from the U.S. Federal Reserve chief, signs of progress on a U.S.-Mexico NAFTA trade deal and a bid by China's central bank to stabilize the yuan.

NASDAQ ENERGY TEAM THOUGHT LEADERSHIP

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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.