Oil Prices Head for Weekly Gain on Stronger Demand Outlook
SECTOR COMMENTARY:
Energy stocks are poised for a mixed to higher start, backed by mild gains in the underlying commodities and broader index futures which continued to grind higher on positive economic data and better-than-expected corporate earnings.
Oil prices rose and are heading for a weekly gain as a stronger demand outlook and signs of economic recovery in China and the United States offset rising COVID-19 infections in some other major economies. "Given the improving outlook for the world's two biggest economies, there is little chance of the market's feel-good glow being extinguished any time soon," said Stephen Brennock of oil broker PVM. Helping the rally this week, the International Energy Agency and OPEC both made upward revisions to oil demand growth forecasts for 2021.
Natural gas futures are higher by 1.2% to $2.689, supported by gains in the crude oil markets and following yesterday’s smaller-than-expected storage build.
No significant news.
HSBC upgraded BP to Buy from Hold.
No significant news.
California Resources Corporation announced that Tiffany (TJ) Thom Cepak has been appointed as the Chair of the Board of Directors of the Company. Ms. Cepak replaces Mark A. (Mac) McFarland as the Chair following his appointment as the permanent President and Chief Executive Officer of the Company on March 22, 2021. Mr. McFarland will continue to serve as a director the Company.
U.S. Well Services announced it has filed suit in the United States District Court for the Western District of Texas - Waco Division for patent infringement against Halliburton Company and Cimarex Energy. The original complaint alleges infringement of multiple U.S. Well Services patents. The alleged infringements are related to U.S. Well Services patents covering "Systems for Pumping Hydraulic Fracturing Fluid using Electric Pumps", "Electric Powered Pump Down", "Systems for Centralized Monitoring and Control of Electric Powered Hydraulic Fracturing Fleet" as well as 4 other related patents. U.S. Well Services currently has a portfolio of 42 patents granted, 4 patents allowed, and 185 patents pending.
Citi initiated coverage of Northern Oil and Gas with a Buy rating.
Titanium Corporation announced that the Company and Canadian Natural ResourcesLimited signed a 2021 Project Coordination Agreement which governs the January 1, 2021 to April 30, 2021 engineering phase of the CVW™ Horizon Project.
Parex Resources announced that Q1 2021 average production is estimated at 46,775 barrels of oil equivalent per day (boe/d) compared to Parex’ guidance of 46,500-47,500 boe/d. Q1 2021 production rates were negatively impacted approximately 1,000 bopd by LLA-34 downtime averaging 6% compared to a historic average of 3%. Parex expects LLA-34 downtime to average 4% for the remainder of 2021. It expect Q2 2021 production to average 47,000-48,000 boe/d. With the increase in 2021 capex, Parex expects H2 2021 production rates to be 48,000-50,000 boe/d. Since 2017 Parex has repurchased an aggregate of 35 million shares, returning CAD$667 million to shareholders. Under the current NCIB which began on December 23, 2020, Parex has purchased 3.4 million shares of the maximum amount of 12.9 million shares. As of March 31, 2020, Parex had 128.6 million basic shares outstanding. Parex expects to purchase the maximum allowable 12.9 million shares under the NCIB, prior to its expiry in late December 2021.
ION Geophysical announced it is revising the previously announced settlement date of its Exchange Offer and Rights Offering. The extension is to enable all of the required information, exchange and clearing agents to finish validating, tabulating and processing the subscriptions given the complexity of the transactions. The Company now expects to settle on or about Monday, April 19, 2021.
No significant news.
Raymond James upgraded Marathon Petroleum to Strong Buy from Market Perform.
Raymond James upgraded Valero Energy to Strong Buy from Outperform.
According to Reuters, the state of North Dakota could see 400,000 barrels a day of crude oil production wiped out if the Dakota Access Pipeline (DAPL) is shut, a state official said on Thursday. Energy Transfer is battling to keep open its 557,000-barrels-per-day pipeline, the largest out of the Bakken shale region of North Dakota and Montana, as U.S. officials conduct an environmental review of the line.
U.S. stock index futures were little changed after the S&P 500 and the Dow closed at record highs in the previous session. European stocks touched record highs, as automakers rose after strong quarterly results from Daimler. Asian equities ended higher after upbeat Chinese economic data raised hopes of a solid global recovery. A weaker dollar pushed up gold prices. Oil continued its rally for a fifth session on a stronger demand outlook. The housing starts and building permits data for March are on the economic calendar.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- 1/8/20 – CNBC’s Squawk Alley: Oil market reaction to US-Iran tensions
- 1/8/20 – Bloomberg Day Break – Steady escalation of US-Iran tensions
- 12/5/19 – Bloomberg Balance of Power – OPEC's Limited Efficacy
- 9/17/19 – Oil's New Risk Premium Discussion on CNBC TV
- 9/16/19 – Discussion on Bloomberg TV about Impact of Abqaiq Attack
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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