Oil Prices Rise After Slipping on Weak U.S. Driving Season Data

SECTOR COMMENTS:

Energy stocks are expected to open higher, tracking continued strength in crude oil prices, which continue to find support around multi-year highs. A handful of rating changes in the E&P space will affect some individual stocks, although macro, commodity and ETF flows will continue to be the broader short-term drivers. Investors put off a sharp spike in inflation data released this morning as analysts broadly expected prices to rise from last year’s pandemic lows year over year.

Oil prices rose one day on Thursday after slipping on data suggesting weak fuel demand during the U.S. driving season as investors watched the upcoming U.S. economic data. “The market is rebounding impressively from yesterday’s dismal weekly EIA report, with the decline in weekly gasoline demand particularly disappointing,” said Tamas Varga, analyst at PVM Oil Associates. “It will be interesting to see if the later OPEC monthly report confirms last month’s positive demand forecast for the second half of the year. If so, as expected, it should support oil prices.”

Natural gas futures are higher, trading around $ 3.15, ahead of the weekly inventory data. Analysts expect a build of 98 bcf.

US INTEGRATED

No news to speak of.

INTERNATIONAL INTEGRATED

No news to speak of.

CANADIAN INTEGRATED

No news to speak of.

US E&PS

RBC downgraded Callon Petroleum, Continental resources and SM energy company to Sector Perform by Outperform.

Cosmos energy announced that Mr. Roy A. Franklin has joined the Board of Directors effective June 9, 2021.

Occidental announced that there is a definitive agreement to sell non-strategic land in the Permian Basin to a subsidiary of Colgate Energy Partners III, LLC for 508 million, the transaction, which is expected to close in the third quarter of 2021, comprises approximately 25,000 Net acres in the Southern Delaware Basin, Texas with current production of approximately 10,000 barrels of oil equivalent per day from approximately 360 active wells. The proceeds from the sale will be used to reduce debt.

RBC updated Marathon oil and Resources area to outperform Sector Perform.

MKM partner downgraded Matador resources and Resources area on neutral from buy.

SM energy company announced that it has set a total face value of $ 400 million on its 6.500% senior unsecured notes due in 2028.

CANADIAN E&PS

RBC updated Birchcliff energy and Crescent point energy to outperform Sector Perform.

OIL FIELD SERVICES

AMECO was recently spun off from its parent company, Fluor Corporation. The company, headquartered in Greenville, SC, with sales force in the United States and Canada, was acquired by mid-sized private equity firm One Equity Partners (OEP) for $ 73 million.

Schlumberger New Energy and Panasonic Energy of North America, a division of Panasonic Corporation of North America, announced today that they have entered into a collaboration agreement to validate and optimize Schlumberger New Energy’s innovative and sustainable lithium extraction and production process in its Neolith Energy- Pilot facility in Nevada. This collaboration paves the way for improved lithium production solutions that will help meet the anticipated surge in lithium demand as the electric vehicle (EV) market gains momentum worldwide.

DRILL

No news to speak of.

REFINER

No news to speak of.

MLPS & PIPELINES

Enbridge announced that it is working with the Ontario government to expand natural gas access to rural, northern and indigenous communities in Ontario, Canada.

Inter-pipeline reaffirmed that the Board of Directors unanimously recommends that shareholders initiate the strategic share swap transaction with Pembina pipelineand reject the revised hostile takeover offer proposed by a subsidiary of Brookfield Infrastructure Partners LP

TC energy confirmed that, after a thorough review of its options and in consultation with its partner, the Alberta Government, it has completed the Keystone XL pipeline project (the Project).

MARKET COMMENTARY

Futures contracts, which are pegged to the major U.S. stock indices, floated Thursday as investors digested a major inflation report that showed a greater than expected spike in price pressures. The consumer price index, which is a basket of food, energy and groceries across a range of goods, rose 5% year over year. Economists polled by Dow Jones had expected an increase of 4.7%. European stocks barely changed as investors counted on accommodating monetary policy from the European Central Bank at a meeting later that day. Japan’s Nikkei closed higher as shipping lines rose on prospects of further economic reopenings and drug makers were bolstered by reports of government support. Gold prices fell under the pressure of a firm dollar.

NASDAQ ENERGY TEAM THINK GUIDANCE

Nasdaq Advisory Services Energy Team is part of Nasdaqs Advisory Services – the most experienced team in the industry. The team delivers unmatched shareholder analyzes, a comprehensive overview of trading and investor activities and insights into the best possible management of public relations in the area of ​​investor relations. If you have any questions, please contact Tamar Essner.

This announcement and the content available through any of the links herein is provided 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 include Reuters, TR IBES, WSJ, The Financial Times, and proprietary Nasdaq research.

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

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