Oil Prices Near One-Month Highs Driven by Positive Demand Forecasts From IEA, OPEC

SECTOR COMMENTS:

Energy stocks are expected to open higher as solid gains in stock futures more than offset a slight reversal from yesterday’s strong oil price gains. Stock indices that are just short of all-time highs will retest these levels amid a strong early start to earnings season, mostly from banks, and solid economic data. In particular, retail sales rose 9.8% in March from an estimated 6.1% increase, and weekly jobless claims fell to a new pandemic low of 576,000.

Scotiabank today made a number of recommendation changes to its E&P reporting.

Oil prices eased on Thursday but remained close to a monthly high supported by more positive demand forecasts from the IEA and OPEC as economies recovered from the COVID-19 pandemic. “The support comes from different sides: On the one hand, the macroeconomic environment remains favorable with regard to the economic outlook, the high risk appetite of investors and the weak US dollar,” said Commerzbank. The IEA and OPEC revised their global growth forecasts for oil demand for 2021 this week upwards to 5.7 million bpd and 5.95 million bpd, respectively.

Natural gas futures are slightly 2 cents lower than the weekly inventory data. In five of the six previous sessions, prices rose. Analysts expect a build of 67 bcf.

US INTEGRATED

According to Reuters, Iraq is in talks with US oil companies about a possible purchase of ExxonMobil Shares in Southwest Qurna Oil Field 1. No details were given as to which companies were interested in buying the shares and no further details were given.

INTERNATIONAL INTEGRATED

According to Reuters, shareholders are in Petroleo Brasileiro SA approved a dividend payment of 10.272 billion reais ($ 1.82 billion) based on the company’s 2020 performance, a securities filing said Wednesday. The payment is equivalent to around 0.787 reais per share, the company announced.

Reuters reported that the Spanish High Court installed Antonio Brufau, the oil company’s current chairman Repsoland Isidro Faine, the former chairman of Spanish Caixabank who was under formal investigation into an investigation into a suspected espionage case, the court said in a statement. The decision follows a request from the public prosecutor to fight corruption a few days ago. Brufau and Faine are now being investigated for evidence of bribery related to their alleged dealings with former ex-police chief Jose Manuel Villarejo. Repsol and Caixabank declined to comment.

According to Reuters Royal Dutch Shell Most of the oil and gas reserves are slated to be extracted by 2050 in order to downplay the risk of stranded assets and prepare to cut greenhouse gas emissions in decades to come. The disclosure is still a rare admission by a major oil and gas company that some of its reserves could be worthless in a world that is shifting from fossil fuels to renewable energies to curb global warming.

According to Reuters, EIG Global Energy Partners will lead an undisclosed consortium that will issue billions in bonds over two or three transactions to replace bank debt that supports an investment in Saudi AramcoThe oil pipeline assets, said two sources. The Washington, DC-based company’s consortium will issue bonds to replace the $ 10.5 billion core funding arranged by Aramco so that potential applicants can take over the 49% stake.

CANADIAN INTEGRATED

Scotiabank updated Cenovus Energy to perform sector outperform by sector.

US E & PS

Scotiabank updated Cimarex Energy to perform sector outperform by sector.

Scotiabank downgraded Diamondback Energy to sector performance from sector outperform.

Scotiabank updated EOG resources to perform sector outperform by sector.

EQT announced its commitment to seek independent certification of the majority of its natural gas produced against the certification standards developed by Equitable Origin and MiQ. The certification process is expected to begin this month, and Equitable Origin and MiQ certification is expected later this year.

Scotiabank updated Murphy Oil to perform sector outperform by sector.

Scotiabank downgraded Occidental Petroleum to sector performance from sector outperform.

Scotiabank downgraded Natural resource pioneer to sector performance from sector outperform.

Ring energy announced that it has recently initiated the next phase of its previously announced drilling program for the Northwest Shelf with three holes located on the top face of the Company’s highest yielding projects in Yoakum County, Texas.

CANADIAN E & PS

National Bank of Canada downgraded Nuvista Energy to sector performance of outperform.

National Bank of Canada downgraded Surge Energy to sector performance of outperform.

OIL FIELD SERVICES

Calfrac Well Services announced the completion of the withdrawal from the purchase of the previously described US $ 1,050,000 of 1.5 Pfandbriefe acquired by an institutional shareholder. The buyer’s original purchase price, minus the interest paid on March 15, 2021, has been refunded and the 1.5 Pfandbriefe have been canceled. Further details on the resignation can be found in Calfrac’s press releases on March 1, 12 and 29, 2021.

DRILL

National Bank of Canada updated Precision drilling Outperformance of Sector Perform.

Refineries

No major news.

MLPS & PIPELINES

No major news.

MARKET COMMENTARY

Wall Street futures were higher as major US banks started the first quarter earnings season well. European stocks hit record highs, buoyed by miners and strong earnings reports. Asian stocks ended in the green. The dollar index was little changed while gold rose.

NASDAQ ENERGY TEAM THINK GUIDANCE

The Nasdaq Advisory Services energy team is part of Nasdaq’s Advisory Services – the most experienced team in the industry. The team provides unmatched shareholder research, a comprehensive view of trading and investor activity, and insights into how to best manage investor relations public relations. If you have any questions, please contact Tamar Essner.

This announcement, and the content found by following a link herein, is made available to you by Corporate Solutions, a company of Nasdaq, Inc. and some of its subsidiaries (collectively, “Nasdaq”) for informational purposes only. Nasdaq makes no representations or warranties with respect to this release or any such content, and expressly disclaims any implied warranties. Sources are Reuters, TR IBES, WSJ, The Financial Times, and proprietary Nasdaq research.

The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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