Oil Slips Amid Banking Concerns
SECTOR COMMENTARY:
The energy sector is set for a lower start, pressured by weakness in the underlying commodities and the major market futures. U.S stocks are sharply lower in the pre-market amid fresh worries of a banking crisis along with a larger-than-expected fall in February’s retail sales.
WTI and Brent crude oil are trading down as concerns over Credit Suisse’s impact on the world markets outweighed hopes of a Chinese demand recovery. Oil was higher after China released data showing their economic activity had increased within the first two months of the year, as consumption and infrastructure investment drove the recovery from the country’s COVID-19 curbs. Additionally, a stronger dollar also weighed in on prices. Investors are waiting to see whether today’s EIA inventory data comes in line with yesterday’s 1.2 million barrel increased reported by the API.
Natural gas futures are lower, tracking losses in crude and on forecasts for warmer weather in the near term.
BY SECTOR:
US INTEGRATEDS
The Fos refinery in southern France operated by ExxonMobil subsidiary Esso was blocked on Wednesday due to a strike over the government's planned pension overhaul, a union representative told Reuters.
Production at Exxon Mobil Beaumont, Texas refinery has surpassed that of other company refineries as a new crude distillation unit (CDU) continues its first startup, sources familiar with plant operations said on Tuesday.
INTERNATIONAL INTEGRATEDS
Aramco and Linde Engineering signed an agreement to jointly develop a new ammonia cracking technology.
Petrobras said on Tuesday that the country's tax appeal board Carf dismissed its appeal in a case related to unpaid taxes that could cost the company 18 billion reais ($3.43 billion).
Shell Offshore Inc., a subsidiary of Shell, announced the Final Investment Decision (FID) for Dover, a planned subsea tieback to the Shell-operated Appomattox production hub in the US Gulf of Mexico (GoM). Dover is expected to start production in late 2024-early 2025 and produce up to 21,000 barrels of oil equivalent per day (boe/d) at peak rates.
Shell has completed the sale of its stake in two offshore production-sharing contracts in Malaysia's Baram Delta to Petroleum Sarawak Exploration & Production Sdn Bhd.
TotalEnergies and Paprec, leader in plastic recycling in France, have signed a long-term commercial agreement to develop a French value chain for advanced recycling of plastic film wastes. The agreement will secure the supply of TotalEnergies' future advanced plastic recycling plant in Grandpuits.
Some 42% of operators at TotalEnergies' French refineries and depots were on strike Wednesday morning as a walkout over the government's planned changes to its pension system continued for an eighth day, a company spokesperson said.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Wind Tre is planning to spin-off its network assets into a separate company as it resumed talks with Swedish private equity firm EQT over a potential sale, two sources familiar with the matter said.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
JP Morgan upgraded Baker Hughes to Overweight from Neutral.
Fluor announced that the company sold its AMECO South America business, which includes assets in Chile and Peru, to STRACON Group, a diversified strategic partner to the mining sector in the Americas.
DRILLERS
No significant news.
REFINERS
Calumet Specialty Products Partners reported results for the fourth quarter and year ended December 31, 2022. Net loss attributable to partners of $70.0 million, or $(0.86) per unit for the fourth quarter 2022. Fourth quarter Adjusted EBITDA of $63.5 million including planned Montana Turnaround and December Freeze.
PBF Energy announced that Georganne Hodges and Damian W. Wilmot have been appointed as independent directors effective as of March 15, 2023.
MLPS & PIPELINES
EnLink Midstream announced that Matthew C. Harris, a Founding Partner of Global Infrastructure Partners (GIP), will be appointed as Chairman of its Board of Directors (Board). Harris previously served on the Board as a director from July 2018 until January 2019. Leldon E. Echols will serve as Lead Independent Director. The appointment will be effective as of March 24, 2023.
MARKET COMMENTARY
U.S. stock index futures fell as investors remained cautious amid lingering concerns of a banking crisis while they awaited more economic data for cues on the Federal Reserve's monetary policy path. News that Credit Suisse's largest investor said it could not provide the Swiss bank with more financial assistance sent its shares and the broader European shares sliding. Japan’s Nikkei ended higher after a volatile day of trading, supported by banking stocks. Oil rose as Chinese economic data bolstered hopes for a demand recovery. The dollar and gold prices edged higher. Later in the day the retail sales and producer prices data are due to be released.
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
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