Crude Climbs on Optimism over Omicron Impact
SECTOR COMMENTARY:
The energy sector is poised for a higher start, building on yesterday’s late day rally on further strength in the crude complex and in the major equity futures which rose as investors looked past earlier jitters about the spread of the omicron variant amid positive new studies suggesting a lower risk of hospitalization than other variants.
WTI and Brent crude oil futures steadied higher in early trading, backed by signs the worst effects of the Omicron coronavirus variant might be fairly containable were countered by new curbs amid surging case numbers and despite governments re-imposing a range of restrictions to slow the spread. Traders are also digesting new treatments from Pfizer and AstraZeneca as well as a new tool against the fast-spreading Omicron.
Following three-straight days of strong gains, natural gas futures dropped over 4% in early trading, pressured by a sharp pull back in European prices and ahead of what is expected to be a bearish weekly storage report.
BY SECTOR:
US INTEGRATEDS
Four people were injured when a fire erupted on Thursday at Exxon's complex in Baytown, Texas, one of the largest refining and petrochemical facilities in the United States, Reuters reported. All other personnel were accounted for, Exxon said, adding that its emergency response crews were still working to extinguish the blaze. Sources familiar with operations at the facility said the fire was in the olefins plant but said no more details were immediately available. It was not immediately clear what impact the incident had on production from the facility.
INTERNATIONAL INTEGRATEDS
No significant news.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
No significant news.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
No significant news.
DRILLERS
No significant news.
REFINERS
Delek US Holdings commenced a program to sell up to 434,590 common limited partner units in Delek Logistics Partners, LP over the next three months in open market transactions conducted pursuant to Rule 144 under the Securities Act of 1933, as amended, and a Rule 10b5-1 trading plan. The program is intended to monetize a portion of the current 80% ownership DK maintains in DKL and highlight the tangible value of this ownership that we believe is not currently reflected in the DK stock price. Simultaneously, we believe additional liquidity and float will ultimately benefit DKL unitholders through improved trading volumes and increasing the pool of potential investors.
MLPS & PIPELINES
No significant news.
MARKET COMMENTARY
Wall Street futures rose, tracking global shares, as investor sentiment improved on signs the impact of the Omicron coronavirus variant may not be as severe as feared. The dollar was little changed, while gold prices edged higher. Oil prices were up, but gains were capped over fears of newer travel restrictions. Consumer spending, durable goods and jobless claims data are on the economic radar.
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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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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