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WTI Futures Touched Highest Level In 2018

Wednesday, September 12, 2018

Sector Commentary

The energy sector is poised for another mixed to higher start, supported by strength across the underlying commodities while major equity futures were flat on lingering trade concerns with China and ahead of what is expected to be a subdued readings for producer prices index and a near always subdued assessment from the Beige Book. Sector news is thin today with the inventory report the next major catalyst for the group.

WTI crude oil futures were up over 1% in early trading to back above the $70-mark, outpacing Brent which is seeing more reserved support after differentials reached their widest levels since June. WTI futures touched their highest level so far in 2018 today after last night’s bullish API report mixed with the prospect of the loss of Iranian supply and the EIA’s revised lower forecast for U.S. crude output growth in 2019, fueled concerns over the balance between consumption and production. The API report showed U.S. crude stocks fell by 8.6 million barrels last week but traders will be looking to the official EIA data later this morning.

Natural gas futures continued to swing higher this morning, backed by forecasts for steady weather and demand over the next two weeks.

INTERNATIONAL INTEGRATEDS

(Late Tuesday) Reuters - Total's 225,500 barrel-per-day Port Arthur, Texas, refinery restarted a sulfur recovery unit on Tuesday afternoon.

U.S. E&PS

Press Release - Berry Petroleum announced the appointments of Anne Mariucci and C. Kent Potter to its Board of Directors and the retirement of Kaj Vazales from the board, all effective September 12, 2018.

Press Release - Northern Oil and Gas announced that preliminary production for July and August, 2018 averaged in excess of 25,000 barrels of oil equivalent per day, substantially ahead of the Company’s prior guidance of 23,000 – 24,000 Boe per day for the third quarter of 2018.

Press Release - Pioneer Natural Resources and U.S. Silica Holdings announced that the companies have entered into a long-term sand supply agreement by which Pioneer will purchase an interest in U.S. Silica’s sand reserves at its Lamesa, Texas, mine in West Texas. This agreement secures a long-term supply of sand from the mine, with U.S. Silica processing and supplying sand to Pioneer for 15 years.

Press Release - Ring Energy announced an approximate $47 million increase in its capital expenditure budget for 2018, making an estimated total of $197 million.

OILFIELD SERVICES

Redburn upgraded TechnipFMC to ‘Neutral’ from ‘Sell’.

Press Release - Pioneer Natural Resources and U.S. Silica Holdings announced that the companies have entered into a long-term sand supply agreement by which Pioneer will purchase an interest in U.S. Silica’s sand reserves at its Lamesa, Texas, mine in West Texas. This agreement secures a long-term supply of sand from the mine, with U.S. Silica processing and supplying sand to Pioneer for 15 years.

MLPS & PIPELINE

(Late Tuesday) Reuters - Enbridge asked U.S. energy regulators for an extension of six months or until April 23 to place its $1.6 billion Valley Crossing natural gas pipeline between Texas and Mexico into service.

Press Release - Targa Resources announced that it has executed agreements to sell its refined products and crude oil storage and terminaling facilities in Tacoma, WA and Baltimore, MD to an affiliate of ArcLight Capital Partners, LLC for approximately $160 million. Subject to customary closing conditions, the sale is expected to close in the fourth quarter. Targa intends to use the proceeds to fund a portion of its growth capital program underway.

MARKET COMMENTARY

U.S. stock index futures were flat amid fresh sparring between Washington and Beijing over trade. U.S. producer prices data is on the radar today, while investors also awaited Apple’s launch event later in the day. European markets shrugged off ongoing trade fears as oil and mining stocks rose after Asian markets ended in the red. The dollar pulled back slightly against a basket of major currencies on trade war concerns while gold prices steadied, trading in narrow ranges.

NASDAQ ENERGY TEAM THOUGHT LEADERSHIP

TD Ameritrade Network– Trade Tariff Effects on Market & Interest Rates


Nasdaq Advisory Services Energy Team Nasdaq's Advisory Services Tamar Essner
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