Crude Steadies as IEA Raises Doubts about Quick Demand Rebound
SECTOR COMMENTARY
Energy stocks are set to pullback this morning, following weaker crude oil and natural gas futures and lower broader index futures. The trading dynamic remains active as the growth versus value push and pull shifts day-to-day amid rising COVID-19 cases, hopes of a rebound into 2021, and the closing of the earnings season drive trading. News flow in the sector is light.
Oil prices fell on Thursday, snapping three consecutive daily gains, as traders tempered expectations of an early release of a COVID-19 vaccine and the IEA raised doubts about a quick demand rebound amid surging infections in Europe and the U.S. Both contracts soared more than 10% this week, lifted by hopes that the pandemic could be brought under control after data showed an experimental vaccine being developed by Pfizer Inc and BioNTech was 90% effective. However, the IEA said on Thursday that global oil demand was unlikely to get a significant boost from the roll-out of the vaccine until well into 2021.
Natural gas futures also pulled back after rising in the prior session on forecasts for more cold weather and heating demand over the next two weeks than previously expected and as LNG exports remain near record highs. Traders await weekly inventory data, with expectations seeking a drawdown of 9 bcf.
INTERNATIONAL INTEGRATEDS
Press Release - Total finalized the acquisition from the Viessmann group of Charging Solutions, the subsidiary specialized in Electric Vehicle charging infrastructure of its affiliate Digital Energy Solutions (DES). With this transaction, Total becomes the operator in Germany of a network of a 2,000 charge points installed at private businesses’ locations, including some of which are accessible to the general public. Total also reinforces its technical and commercial competencies in the fields of installation, operation and management of charging networks dedicated to fleets and companies. Based in Munich, this new entity of Total Deutschland will pursue its development by offering complete solutions for electric charging, including consulting, planification, installation and invoicing of charging services. Fleet managers will also benefit from adapted solutions for their employees’ home charging of companies’ cars.
U.S. E&PS
Press Release - GeoPark Limited, a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Ecuador, Chile, Brazil and Argentina today announced the successful testing of the Indico 2 appraisal well in the CPO-5 block (GeoPark non-operated, 30% WI1) in Colombia.
CANADIAN E&PS
Press Release - Ovintiv Inc. named Brendan M. McCracken as president, effective December 1, 2020. "Today's appointment recognizes Brendan's significant impact on our success and reflects our confidence in his leadership," said CEO Doug Suttles. "This move is part of our ongoing executive development and ensures that we have leaders for the future." McCracken will maintain his current responsibilities of investor relations, external affairs and strategy and reporting to him will be the COO; EVP, midstream, marketing and fundamentals; and the EVP, corporate services. No senior leadership positions are being added with this announcement.
REFINERS
Press Release (Late Wednesday) - Marathon Petroleum Corporation announced that Donald C. Templin, executive vice president and chief financial officer, has elected to retire from the company, effective in January 2021. A nationwide search for the company's next CFO is ongoing. "Don was part of the original management team that established MPC as a publicly-traded company, and his deep financial experience, strong business skills and broad knowledge of our industry have been an integral part of our growth and success," said Michael J. Hennigan, president and chief executive officer. "I'm especially grateful for Don's leadership during this challenging year for our business and the support he provided during my transition to CEO. We thank Don for his many contributions to MPC and MPLX over the past decade, and I look forward to working with him to close out this year before he begins his well-earned retirement."
MARKET COMMENTARY
Futures tracking the S&P 500 were lower as U.S. coronavirus cases surged and investors weighed the timeline of the roll-out of an effective vaccine. European shares retreated from eight-month highs amid concerns about a quicker economic rebound. Asian equities ended mostly in the red. The dollar was down, while gold prices rose.
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.
Other Topics
Energy Commodities Nasdaq Advisory Services
MarketInsite
Nasdaq
Nasdaq’s Marketinsite offers actionable insights on a variety of market-moving topics. Learn from our thought leaders who are driving the capital markets of tomorrow.
Read MarketInsite's Bio