Oil Up Amid Higher Global Demand Forecasts from the IEA
SECTOR COMMENTARY:
The energy sector is poised for a mixed to higher start, supported by mild strength in the underlying commodities while major equity futures steadied as traders turned their attention to a meeting between congressional leaders and the President on the U.S. debt ceiling and digested lackluster results from Home Depot.
WTI and Brent crude oil futures inched higher this morning, supported by higher global demand forecasts from the IEA which outweighed weaker than expected economic data of out China. The IEA raised its forecast for global oil demand this year by 200,000 bpd to a record 102 million bpd commenting China's recovery after the lifting of COVID-19 curbs had surpassed expectations, with demand reaching a record 16 million bpd in March. Also offering supported was news from the Department of Energy saying it would buy 3 million barrels of crude oil for the SPR for delivery in August and fresh data showing an 18.9% rise in China's oil refinery throughput in April from a year earlier, second-highest on record. Data from China showing that industrial output and retail sales growth undershot forecasts in April drove speculation that their economy lost momentum at the start of the second quarter and weighed on prices.
Natural gas futures continue to build on yesterday’s 4.8% rally, lifted by lingering concerns over a decline in future production after data last week showed energy companies had cut down on the number of rigs for drilling gas.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
From 11 May to 12 May, Equinor ASA has purchased a total of 670,000 own shares at the Oslo Stock Exchange at an average price of NOK 298.7126 per share.
Petrobras is set to announce on Tuesday the end of its import parity policy for gasoline and diesel, according to two sources familiar with the matter.
Petrobras is set to announce the end of its import parity policy for gasoline and diesel, CNN Brasil reported on Monday citing two sources close to the matter.
SunPower announced that Elizabeth "Beth" Eby has been appointed as its Chief Financial Officer (CFO), effective May 30, 2023. Eby is a seasoned executive who brings more than 30 years of experience in financial strategy, execution and governance at Fortune 50 and publicly traded technology companies.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Northern Oil and Gas announced that it has entered into a definitive agreement to acquire a 30% undivided stake in the Forge Assets in the Delaware Basin, in partnership with Vital Energy, Inc., for a purchase price net to NOG of $162.0M in cash, subject to typical closing adjustments.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
ProFrac Holding announced today that Executive Chairman, Matt Wilks, and Chief Executive Office, Ladd Wilks, elected to decline approximately 42% of their recently awarded restricted stock units that were earned through ProFrac Holding Corp.'s 2022 Long Term Incentive Plan.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
Cheniere Energy announced that Cheniere’s subsidiary, Cheniere Marketing International LLP, has entered into a long-term liquefied natural gas sale and purchase agreement with Korea Southern Power Co. Ltd (“KOSPO”).
Citi upgraded Williams Companies to Buy from Neutral.
MARKET COMMENTARY
U.S. stock index futures edged lower ahead of critical debt limit talks, and retail sales data that will offer more insight on the economy's health. European shares were largely steady, while Japan's Topix index closed at a 33-year high. Oil prices were slightly higher as support from a higher global demand forecast from the International Energy Agency (IEA) was countered by weaker than expected Chinese economic data. Gold prices dropped after U.S. central bank officials indicated they expect interest rates to stay high. The dollar rose as the U.S. currency hints at a rebound from its recent weakness.
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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