Oil
Oil

Oil Up Ahead of Tomorrow’s OPEC+ Meeting

SECTOR COMMENTARY:

The energy sector is set for a higher start, supported by strength in the crude complex and the major equity futures as investors attempt to extend November’s rally during the last week of the month.  

WTI and Brent crude oil futures are adding to yesterday’s gains on tomorrow’s OPEC+ meeting, supply disruptions caused by a storm in the Black Sea and on last night’s API print. OPEC+ is expected to decide 2024 oil policy tomorrow after the meeting had been delayed from November 26th. A severe storm in the Black Sea region has disrupted up to 2 million barrels per day (bpd) of oil exports from Kazakhtsan and Russia, according to state's officials and port agent data. Traders will also be gauging crude inventories as last night’s API data showed crude stocks fell 817K barrels, meanwhile Reuters expects the total inventory figure to fall 933K barrels.

Natural gas futures are lower on the first day of trading for the January front-month contract  amid a combination of warmer weather, weaker feed gas flows and record production.

BY SECTOR:

US INTEGRATEDS

Saipem has won two offshore contracts in Brazil and Guyana worth around $1.9 billion in total, it said. In Brazil, Saipem was awarded a contract by Equinor for the Raia project, which envisages the development of a pre-salt gas and condensate field in the Campos Basin, located about 200 kilometres offshore the state of Rio de Janeiro, a statement said. The project is one of Brazil's most important gas development initiatives and could cover 15% of the total domestic gas demand of the country, Saipem said. In Guyana, it was awarded a contract by Exxon Mobil's subsidiary ExxonMobil Guyana Limited for the proposed Whiptail oilfield development located in the offshore Stabroek block.

INTERNATIONAL INTEGRATEDS 

Petrobras filed requests to Brazil's competition regulator Cade to renegotiate terms that stipulated the company must sell some of its oil refining and natural gas assets, the company said. The terms, signed by the company in mid-2019, were part of a broad initiative by the government of then-president Jair Bolsonaro to reduce Petrobras' share in Brazil's oil and gas sector, opening the market for new companies with prospects of more investment. Under the agreements with the regulator, the oil giant had committed to a time frame for selling off all its oil refineries outside the states of Rio de Janeiro and Sao Paulo, as well as its natural gas transportation and distribution assets.

Shell PLC has authorized contractor McDermott International to start engineering work on its Manatee gas field development project off Trinidad and Tobago's east coast, the contractor disclosed.

TotalEnergies announced the acquisition of a minority stake in the Xlinks Morocco-UK Power Project, a move it said would help the company achieve its targets in the coming year. TotalEnergies said it acquired a 20 million pound ($25 million) stake.

Jefferies downgraded Equinor ASA to Underperform from Hold.

Jefferies downgraded TotalEnergies SE to Hold from Buy.

CANADIAN INTEGRATEDS

No significant news.

U.S. E&PS

No significant news.

CANADIAN E&PS

No significant news.

OILFIELD SERVICES

ProPetro Holding announced that it has appointed Shelby Fietz as its Chief Commercial Officer and Celina Davila as its Chief Accounting Officer, effective November 26, 2023.

DRILLERS

No significant news.

REFINERS

Elliott Management has taken a $1 billion stake in refiner Phillips 66 and plans to seek as many as two board seats, CNBC reported citing sources.

MLPS & PIPELINES

Enbridge announced its 2024 financial guidance and an annualized common share dividend increase from $3.55 to $3.66 per share effective March 1, 2024. Announced 2024 adjusted earnings before interest, income taxes and depreciation (EBITDA) guidance on base business of $16.6 billion to $17.2 billion and distributable cash flow (DCF) per share of $5.40 to $5.80. This excludes EBITDA and DCF contributions from the gas utilities acquisitions announced on September 5, 2023, which are expected to close during 2024. The Company expects its 2024 base business EBITDA to grow by more than 4% and its DCF to increase by approximately 3% compared to the midpoint of its 2023 guidance. Declared 29th consecutive annual common share dividend increase, raising it by 3.1% to $0.915 per quarter ($3.66 annualized), effective March 1, 2024. Reaffirmed 2023 full year guidance for EBITDA and DCF, inclusive of the recent share offering dilution.

MARKET COMMENTARY

Wall Street futures rose, boosted by a decline in Treasury yields, as investors gained confidence about an interest rate cut from the Federal Reserve next year. European shares were higher, led by gains in German stocks, after data pointed to easing inflation. Japan’s Nikkei ended in the red as investors continued to sell stocks to book profits after last week's rally. Gold prices edged lower as the dollar ticked up. Oil prices gained as investors turned their attention to an OPEC+ meeting to decide on output policy, while supply disruption caused by a storm in the Black Sea and lower U.S. inventories drove buying.


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  Rich Pontillo.


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Nasdaq Energy News

Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services. 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.

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