• April 16, 2024

Oil Prices Rise on Optimism Over U.S. Economic Rebound

SECTOR COMMENTS:

Energy stocks are off to a mixed to higher start, supported by gains in the underlying commodities, while the broader index futures declined slightly from record highs as investors braced for the start of the earnings season this week.

Oil prices rose on optimism about a recovery in the U.S. economy as coronavirus vaccinations accelerated and tensions in the Middle East, although rising COVID-19 cases elsewhere kept prices under control. “The prices are supported by external factors such as the weaker US dollar and the higher risk tolerance of investors as well as the continued good production discipline of OPEC,” said Eugen Weinberg, an analyst at Commerzbank.

Natural gas futures are also higher in early trading, aided by increases in the crude oil market, while weather forecasts show seasonal temperatures for all of the western Rockies, and seasonal or seasonal temperatures for Florida, the tri-state area, and New England Everywhere otherwise it is expected to be below the season.

US INTEGRATED

SINOPEC announced that on April 9, 2021, the group and ExxonMobil (Huizhou) Chemical Co., Ltd. has signed a BEPC (Basic Design, Engineering, Procurement and Construction) contract for the planned Huizhou Chemical Complex Project (Phase I). Under the contract, the EMHCC group will provide BEPC services for the project. The main scope of services includes the basic design, engineering, procurement and construction of all process units, utilities and infrastructures. The order value is estimated at several billion USD.

Jefferies upgraded ExxonMobil to keep from underperforming.

INTERNATIONAL INTEGRATED

Eni strengthens its presence in Vietnam with the acquisition of Block 115. Eni acquires a 100% interest in Block 115/09 in the Song Hong Basin near the Ken Bau Gas and Condensate Discovery.

Jefferies upgraded Eni of hold to buy.

EIG announced that it has signed a lease and lease-back agreement Saudi Arabian Oil Co. With this in mind, an EIG-led investor consortium will acquire a 49% stake in Aramco Oil Pipelines Company, a newly formed company with rights to 25 year duty payments on oil transported through Aramco’s stabilized oil pipeline network. The transaction is valued at approximately $ 12.4 billion, with Aramco holding the remaining 51% interest in the new company, indicating a total capital value of Aramco Oil Pipelines of approximately $ 25.3 billion.

According to Reuters, the board of directors of Petrobras has approved an agreement with the government on the compensation to be paid to Petrobras in the event of an auction of reserves in two offshore oil fields, the company said on Friday. The government tried and failed to auction reserves in the Atapu and Sepia offshore oil blocks in 2019, although officials are keen to try again. Since Petrobras, formerly Petroleo Brasileiro SA, has already carried out exploration and development work in these regions, the company is entitled to compensation.

By 2025, 5,000 fast and ultra-fast chargers for electric vehicles are expected to be installed in the UK Royal Dutch Shell. The Anglo-Dutch oil major also plans to invest in slower public charging points on the street to consolidate a market-leading position created by the acquisition of Ubitricity in February.

CANADIAN INTEGRATED

No major news.

US E & PS

No major news.

CANADIAN E & PS

Gran Tierra Energy announced an operational and financial update. The company achieved an average production of 24,463 BOPD in the first quarter of 2021, up 12% from the previous quarter. It increased the current average production1 to 28,930 BOPD, the highest level since February 2020. It also increased the current average production of the Acordionero field1 to 16,400 BOPD, the highest level since September 2019. It confirmed the 2021 production forecast for the full year of 28,000 to 30,000 BOPD.

OIL FIELD SERVICES

Halliburton Company announced that it has signed an eight-year contract with the Norwegian Petroleum Directorate (NPD) for the provision and operation of Diskos, the Norwegian national repository for earthquake, wellbore and production data for the oil and gas industry.

KBR expands its presence in the UK naval defense sector with a new $ 470 million five year contract to transform the way infrastructure services are delivered at HM Naval Base Portsmouth.

DRILL

No major news.

Refineries

Credit Suisse upgraded PBF Energy from underperform to neutral.

MLPS & PIPELINES

No major news.

MARKET COMMENTARY

Wall Street futures were red as investors waited for gains as well as inflation and retail data. European stocks fell from all-time highs ahead of the earnings season. Japan’s Nikkei ended lower, hurt by Yaskawa Electric’s below-expected earnings outlook. The dollar fell as government bond yields fell. Oil traded higher as investors remained optimistic about a recovery in the US economy. Gold prices fell. The data on the federal budget for March will be published later in the day.

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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