Crude Rises as Market Takes in Ida’s Impact to Gulf Coast Oil Infrastructure
SECTOR COMMENTARY:
Energy stocks are poised for a slightly higher open, backed by mild gains in the crude complex while the broader index futures inch higher following Friday’s record close. Markets could stay largely range-bound until the release of August’s jobs report on Friday and ahead of the extended holiday weekend as volume levels are expected to taper off.
Both WTI and Brent are fractionally higher, while gasoline futures outperform on potential shortages as the market takes in the impact of hurricane Ida to Gulf Coast oil infrastructure and awaits the OPEC+ meeting on Wednesday. Colonial Pipeline halted flows from Houston to Greensboro North Carolina while at least 10 ports all along the Gulf Coast, including the LOOP terminal, were closed. Meanwhile, ahead of the OPEC meeting on Wednesday, OPEC delegates say they expect the scheduled supply increase to go ahead, although Kuwait's oil minister said on Sunday it could be reconsidered.
Natural gas futures are down ~2.0% to $4.293, coming off closing highs on Friday which were not seen since December of 2018. LNG feedgas flows over the weekend were estimated at roughly 11.0 Bcf/d. Hurricane Ida had close to 2.1 Bcf of production shut-in as of yesterday.
BY SECTOR:
No significant news.
According to Reuters, Shareholders in Petroleo Brasileiro SA elected seven government-backed candidates to the board of directors and one candidate backed by market shareholders at an extraordinary meeting on Friday. In total, there are now seven government-backed board members at the state-run company, three backed by market shareholders and one backed by workers. The results of the election are the same as Petrobras' previous vote on the matter in April.
According to Reuters, Royal Dutch Shell said its subsidiary Sarawak Shell Berhad has taken a final investment decision on the Timi gas development project offshore Malaysia, which will powered by solar and wind sources. The offshore wellhead project, developed with its partners Petronas Carigali and Brunei Energy Exploration, could see peak production of up to 50,000 barrels of oil equivalent per day (boe/d) and will move gas to the F23 production hub via an 80 kilometer-long pipeline, the company said in a release.
No significant news.
Truist Securities downgraded EOG Resources to Hold from Buy.
Truist Securities upgraded Magnolia Oil & Gas to Buy from Hold.
Citi resumed coverage of EQT with a Buy rating.
ARC Resources announced that the Toronto Stock Exchange accepted the notice filed by ARC to commence a normal course issuer bid. The NCIB allows ARC to purchase up to 72,236,753 of its outstanding common shares representing 10 per cent of the Company's public float, over a 12-month period commencing September 1, 2021.
Canacol Energy announced the execution of a new long term take or pay gas sales contract with Empresas Publicas de Medellin E.S.P. and provides an update on the pipeline project associated with the sales contract.
Enerplus announced that it has entered into a definitive agreement to sell its interests in the Sleeping Giant field (Montana) and Russian Creek area (North Dakota) in the Williston Basin for total consideration of US$115 million. In addition, Enerplus will receive up to US$5 million in contingent payments if the WTI oil price averages over $65 per barrel in 2022 and over $60 per barrel in 2023. The effective date of the transaction is July 1, 2021.
Coker & Palmer upgraded Halliburton to sector outperform from sector perform. The firm also upgraded ChampionX and NOV to sector perform from sector underperform.
Noble Corporation announced that all personnel onboard the Pacific Sharav, Noble Globetrotter I, and Noble Globetrotter II ultra-deepwater drillships in the US Gulf of Mexico are safe and accounted for following Hurricane Ida. Each rig successfully secured its respective well in progress and took evasive actions to avoid the storm's path. Of the three, the Noble Globetrotter II is the only vessel that encountered hurricane-force conditions. The vessel maintained stability throughout the weather event and is operating on its own power with functional marine and safety systems. A full assessment of its condition will be completed as soon as the weather clears.
No significant news.
No significant news.
Wall Street futures rose, along with world stocks, as U.S. Fed Chair Powell's comments at the Jackson Hole symposium allayed market fears of a fast withdrawal of stimulus. The dollar steadied, while gold was slightly lower. Oil prices dropped as Hurricane Ida weakened after forcing precautionary shutdowns of U.S. Gulf oil production.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- 5/19/21 –VIDEO: Energy Sector Catalysts
- 5/17/21 – VIDEO: Oil prices could become ‘a little disjointed’: Nasdaq Analyst
- 2/18/21 – VIDEO: Why the Texas energy crisis may send gasoline prices higher
- 2/17/21 – VIDEO: Texas Freeze Hits Oil Supply
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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