Markets

U.S. Stocks Look To Extend Two-day Rally Amid Volatile Trading

Friday, December 28, 2018

Sector Commentary

The energy sector is poised for a positive start, boosted by mild strength in the crude complex ahead of today's EIA crude inventory release while higher U.S. stock index futures heightened the risk-on sentiment. U.S. stocks look to extend a two-day rally amid volatile trading and raising expectations that the recent selloff may have eased for now.

Oil prices on both sides of the Atlantic rebounded marginally in early morning trading, clawing back some of the ground lost this week, but remained close to their lowest levels in more than a year as rising U.S. inventories and concern over global economic growth kept markets under pressure. The gains came despite last night's API report which showed U.S. crude stocks rose 6.9 million barrels in the week to December, 21, but traders will be looking to the EIA data later this morning to confirm.

Natural gas futures fell over 5% in pre-market trading , amid forecasts for milder temperatures that would moderate heating demand in key consuming regions and ahead of today's weekly inventory data.

US INTEGRATEDS

Press Release - Transocean Ltd. announced that it has signed a rig design and construction management contract, as well as a five-year drilling contract, with Chevron Corp for one of its two dynamically positioned ultra-deepwater drillships currently under construction at the Jurong shipyard in Singapore. The drilling contract has an estimated backlog of $830 million USD, excluding mobilization and reimbursables. The drilling contract is subject to design, construction, and delivery requirements set forth in the construction contract. The rig will be the first ultra-deepwater floater rated for 20,000 psi operations and is expected to commence operations in the Gulf of Mexico in the second half of 2021.

INTERNATIONAL INTEGRATEDS

Reuters - Petroleo Brasileiro has approved measures that will give the state-run oil company greater flexibility in setting its diesel prices, the firm said in a filing on Friday. While Petrobras, as the firm is known, did not explicitly call the plan a hedging programme, it said the move was similar to a measure taken in September, when the company introduced a hedging programme for gasoline.

Press Release - Royal Dutch Shell announced that it has completed the sale of its shares in Shell entities in New Zealand, to OMV for $578 million. This includes the Māui, Pohokura, and Tank Farm assets, and the sale of Shell's interest in (and operatorship of) the Great South Basin venture, which was subject to a separate agreement.

CANADIAN E&PS

(Late Thursday) Press Release - Encana Corp announced that its wholly-owned subsidiary, Encana Oil & Gas, has completed the previously announced sale of its San Juan asset in New Mexico to Denver-based DJR Energy.

DRILLERS

Press Release - Transocean Ltd. announced that it has signed a rig design and construction management contract, as well as a five-year drilling contract, with Chevron USA, Inc. for one of its two dynamically positioned ultra-deepwater drillships ("the drillship") currently under construction at the Jurong shipyard in Singapore. The drilling contract has an estimated backlog of $830 million USD, excluding mobilization and reimbursables. The drilling contract is subject to design, construction, and delivery requirements set forth in the construction contract. The rig will be the first ultra-deepwater floater rated for 20,000 psi operations and is expected to commence operations in the Gulf of Mexico in the second half of 2021.

MARKET COMMENTARY

U.S. stock futures pointed to a higher open on Friday for the three major indexes in the U.S., as Wall Street gets set to build on back-to-back rallies. The rise in futures comes after a wild day on Wall Street that saw stock indexes recover from steep losses to post solid gains.

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.