Oil Prices Sink Pressured by Weak Economic Data out of China
SECTOR COMMENTARY:
Energy stocks are poised for a mixed to lower start, weighed down by weakness in the crude complex while the broader index futures rose ahead of another busy week of corporate earnings.
Both WTI and Brent are down about 1% in early trading, pressured by weak economic data out of China and continued lockdowns in Asia. China's factory activity expanded in July at the slowest pace in 17 months. Meanwhile, GasBuddy data had gasoline demand week-ended 31-July at a new 2021 record, while TSA checkpoint data had a post-pandemic record for air travelers yesterday of 2,238,462.
Natural gas futures are up 1.5% as forecasts over the weekend turn warmer. NOAA 6-10 and 8-14 day forecasts both expect most places East of the Rocky Mountains to experience above-seasonal temperatures.
BY SECTOR:
Chevron announced that Joseph C. (Joe) Geagea, executive vice president, Technology, Projects and Services, will retire from the company after 40 years of outstanding service. Geagea will continue as an executive vice president and serve as senior advisor to chairman and CEO Michael Wirth until his retirement on or about March 1, 2022.
Chevron today announced the appointment of Eimear Bonner as vice president, reporting to Chairman and CEO Michael Wirth, effective August 2. Bonner will also continue as president, Chevron Technical Center, and chief technology officer, overseeing the application of technology, research and development, and Chevron’s digital strategy.
Eni has made an oil find in Upper Miocene sequences on the Sayulita Exploration Prospect in Block 10 in the mid-deep water of the Cuenca Salina Sureste Basin, offshore Mexico.
Repsol and Enagás' renewable hydrogen production project receives support from European Commission, according to Reuters.
No significant news.
Continental Resources announced that its Board of Directors has declared a quarterly dividend of $0.15 per share on the Company's outstanding common stock, payable on August 20, 2021 to stockholders of record on August 10, 2021.
Evercore initiated coverage in Magnolia Oil & Gas with a ‘Outperform’ rating.
No significant news.
Baker Hughes announced that the Baker Hughes Board of Directors declared a cash dividend of $.18 per share of Class A common stock payable on August 20, 2021 to holders of record on August 10, 2021.
Fluor announced that the U.S. Navy’s Naval Sea Systems Command selected the company for a 7½-year position on the SeaPort Next Generation indefinite-delivery/indefinite-quantity multiple-award contract.
Goldman Sachs downgraded Liberty Oilfield Services to ‘Neutral’ from ‘Buy.
TETRA Technologies reported that it has a completed a preliminary technical assessment by an independent geological consulting firm to assess lithium and bromine exploration targets of the Company's approximately 31,100 net acres of brine leases in the Smackover Formation in Southwest Arkansas.
No significant news.
No significant news.
Enable Midstream Partners announced that the board of directors of its general partner declared a quarterly cash distribution of $0.16525 per unit on all outstanding common units for the quarter ended June 30, 2021. The distribution is unchanged from the previous quarter. The quarterly cash distribution of $0.16525 per unit on all outstanding common units will be paid Aug. 24, 2021, to unitholders of record at the close of business Aug. 12, 2021.
NuStar Energy announced that it has entered into an agreement to sell its storage terminals in the Northeast and one terminal in Florida to Sunoco LP for $250 million. There are eight terminal locations included in the sale: Andrews AFB in Washington, D.C.; Baltimore, MD; Blue Island, IL; Jacksonville, FL; Linden, NJ; Paulsboro, NJ; Piney Point, MD; and Virginia Beach, VA. The sale is expected to close by the beginning of the fourth quarter of 2021, subject to the satisfaction of customary closing conditions.
U.S. stock index futures rose as a $1 trillion infrastructure bill unveiled by U.S. Senators raised hopes of more fiscal stimulus, while investors turned to manufacturing activity data, due later in the day, to gauge the pace of a domestic economic rebound. Strong earnings pushed European shares higher, after a recovery in Asian equities overnight. In currencies, the dollar index was down, hovering just above a one-month low, while the euro advanced. Oil prices were hit by concerns about Chinese demand. Gold prices slipped as improving risk appetite weighed on the safe-haven metal.
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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