Oil
Oil

Crude Climbs as Analysts Assess Impact of Renewed Lockdown Restrictions

WTI and Brent crude oil futures were flat to higher in earlier trading, steadying following the recent volatility as analysts took the view that renewed lockdown restrictions would have only a limited impact on futures fuel demand.

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SECTOR COMMENTARY

The energy sector is poised for a mixed start following yesterday’s sharp declines, seesawing as overnight strength across the underlying commodities faded and as U.S. equity futures pared earlier gains alongside European stocks as investors weighed strength in tech shares against tighter restrictions to combat the coronavirus.

WTI and Brent crude oil futures were flat to higher in earlier trading, steadying following the recent volatility as analysts took the view that renewed lockdown restrictions would have only a limited impact on futures fuel demand. A stronger Dollar and the potential for Libya to add >300K bpd to the global market in the coming week kept a cap on gains.

Natural gas futures are oscillating in and out of positive territory as we approach the open but are off session highs, bouncing off yesterday’s 10.4% drop while forecasts for less demand over the next two weeks than previously expected due to a reduction in LNG exports and as we move into the heart of shoulder season, continued to dampen sentiment. 

INTERNATIONAL INTEGRATEDS

Reuters - BP's output at its projects in Azerbaijan stood at 16 million tonnes in the first eight months of the year.

Reuters - Petrobras said it has concluded bond buy back of $3.98 billion.

(Late Monday) Reuters - Petrobras said on Monday it will open another round of offers for its Repar refinery in the state of Parana, after receiving two bids of similar values.

(Late Monday) Press Release - Petrobras announced the final results of the previously announced offers to purchase for cash by its wholly-owned subsidiary Petrobras Global Finance B.V., of any and all of its outstanding notes. The Offers were made pursuant to the terms and conditions set forth in the offer to purchase dated September 10, 2020.

Reuters - Total on Thursday will announce plans to stop its traditional refinery operations at its Grandpuits refinery.

U.S. E&PS  

Press Release - Matador Resources announced the results from the first four Boros wells completed and turned to sales in its Stateline asset area in Eddy County, New Mexico.

Truist Securities upgraded Matador Resources and WPX Energy to ‘Buy’ from ‘Hold’.

CANADIAN E&PS 

(Late Monday) Press Release - Bonterra Energy acknowledged receipt of the unsolicited offer from Obsidian Energy to purchase all the issued and outstanding common shares of Bonterra. The Offer is open for 105 days and there is no immediate need to take any action.

OILFIELD SERVICES 

Press Release - CGG has announced a Q4 delivery of the fast-track results from its recently acquired 3D multi-client seismic survey of the Gippsland Basin in South East Australia. The broadband data will enable both incumbents and new players to make informed decisions when bidding on blocks in the prolific, hydrocarbon-producing Gippsland Basin area of Australia’s 2020 Offshore Petroleum Exploration Acreage Release.

MARKET COMMENTARY

Futures tracking the S&P 500 and the Nasdaq indexes rebounded with beaten down technology-related stocks leading early gains, while Dow futures were lower. Europe's stock markets clawed back some ground after a sell-off in the previous session, while Asian shares ended lower. The dollar erased gains against a basket of major currencies. Oil prices rose as analysts took the view renewed lockdown restrictions would have only a limited impact on fuel demand. Spot gold fell, with investors doubting over additional stimulus measures to aid the coronavirus-hit economy ahead of speeches from Federal Reserve officials this week. Data on existing home sales is due later in the day.

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.

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