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Oil

Oil Falls as Production Disruptions End

Oil prices fell as force majeure at Libya's largest oilfield was lifted, a Norwegian strike affecting production ended, and U.S. producers began restoring output after Hurricane Delta.

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SECTOR COMMENTARY

Energy stocks are set to open mixed to higher, weighed down by weakness in the crude complex while U.S. stock index futures rose as stimulus talks continued and as investors prepare for a busy week of corporate earnings.

Oil prices fell as force majeure at Libya's largest oilfield was lifted, a Norwegian strike affecting production ended, and U.S. producers began restoring output after Hurricane Delta. "It's all about ending production disruptions ... (which) are not helpful in a period with ongoing demand concerns," said UBS oil analyst Giovanni Staunovo. Meanwhile, Goldman reiterated its bullish 2021 view for both natural gas and oil, saying drivers for higher prices supersede the potential outcomes of the U.S. election.

Natural gas futures jumped over 5% on cooler-than-average temperatures in most parts of the US which should boost heating demand while the SW is expected to be warmer than normal, boosting cooling demand.

U.S. INTEGRATEDS

Reuters - Chevron said its Empire and Fourchon terminals in Louisiana and related pipeline systems were back to operational status after Hurricane Delta.

Reuters - Chevron has begun to restaff evacuated oil and gas production facilities in the U.S. Gulf of Mexico, the company said in a statement, as calm returned to an area struck by Hurricane Delta.

INTERNATIONAL INTEGRATEDS                       

Reuters - BP and its partners have started production from the Block 61 Ghazeer natural gas field in Oman, several months ahead of initial plans.

Reuters - Royal Dutch Shell said its mobile drilling units were returning to the Gulf of Mexico to restart operations after Hurricane Delta.

Reuters - Total SA continued restarting production at its 225,500-barrel per day (bpd) Port Arthur, Texas, refinery on Sunday following a plantwide power outage.

OILFIELD SERVICES 

Press Release - Petrofac announced that Ayman Asfari has decided to retire as Group Chief Executive at the end of the year to focus on his family, health and charitable interests. Sami Iskander will join as Deputy Chief Executive on 1 November 2020 and, following a short transition period, will assume the role of Group Chief Executive from 1 January 2021, at which time he will also be appointed as an Executive Director to Petrofac's Board of Directors. On 1 January 2021, Ayman Asfari will be appointed as a Non-executive Director to Petrofac's Board of Directors, to provide stability and continuity.

REFINERS

Press Release - The board of directors of Phillips 66 has declared a quarterly dividend of 90 cents per share on Phillips 66 common stock. The dividend is payable on Dec. 1, 2020, to shareholders of record as of the close of business on Nov. 17, 2020.

(Late Friday) Reuters - The small crude distillation unit (CDU) at Valero Energy’s 335,000 barrel-per-day (bpd) Port Arthur, Texas, refinery was shut on Friday night after high winds knocked over a cooling tower.

MLPS & PIPELINES   

(Late Friday) Reuters - Keyera announced a cash dividend for October 2020 of 16.00 cents per common share. The dividend will be payable on November 16, 2020, to shareholders of record on October 22, 2020.

MARKET COMMENTARY

Futures tracking the S&P 500 and Nasdaq 100 rose as investors remained hopeful about a deal in Washington over more fiscal stimulus, while Dow futures were subdued ahead of the start of the quarterly corporate earnings season. European shares edged higher, while Japan’s Nikkei fell as concerns about upcoming corporate earnings prompted some investors to take profits. Gold slipped as the dollar recovered some ground. Oil prices dropped as force majeure at Libya's largest oilfield was lifted, a Norwegian strike affecting production ended and U.S. producers began restoring output after Hurricane Delta.

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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