December 5, 2020

Crude Edges Lower, But Set for Biggest Weekly Gain Since June

SECTOR COMMENTARY

Energy stocks are set to open mixed to lower, weighed down by weakness in the underlying commodities while U.S. stock index futures traded mixed following yesterday’s sell off as investors remain on edge about the outlook of further government stimulus. Meanwhile, we should expect to see heightened volume levels in the form of block trades at the open and close amid today’s quad-witching and index rebalancing.

Oil prices are off session highs but on track for their largest weekly gain since June. Moving prices lower is news out of Eastern Libyan as commander Khalifa Haftar said in a broadcast today that his forces had decided to resume oil production after having blockaded export facilities since January, without giving further details.

Natural gas is off ~3 % following yesterday’s 10% drop on several factors including weather, weekly storage, weaker Gulf Coast demand following Sally and Cameron LNG struggles. Despite Cameron LNG feedgas flows being flatlined, estimates have total US flows today approaching 8.0 Bcf.

INTERNATIONAL INTEGRATEDS  

(Late Thursday) Reuters – Petrobras said that it had released a teaser regarding the sale of its stake in fertilizer firm Araucária Nitrogenados S.A. in the state of Parana.

(Late Thursday) Reuters – Shell has started ramping up production at Appomattox, its largest floating platform in the Gulf of Mexico, after it was shut due to Hurricane Sally.

CANADIAN E&PS 

Press Release – Enerplus announced that a cash dividend in the amount of CDN$0.01 per share will be payable on October 15, 2020 to all shareholders of record at the close of business on September 30, 2020. The ex-dividend date for this payment is September 29, 2020.

OILFIELD SERVICES 

Press Release – Fluor announced that its joint venture COOEC-Fluor Heavy Industries, Co., Ltd. fabrication yard in Zhuhai, China, has been awarded a contract to fabricate jackets and suction caissons by Seaway 7, the Renewables business unit of Subsea 7, for phase one of the Seagreen offshore wind farm project (Seagreen 1) located in the North Sea off the coast of Scotland.

Press Release – PGS ASA informed in its Q2 and preliminary first half 2020 results presentation that the Company was in negotiations with its lenders to preserve liquidity in light of the dramatic negative market change caused by the Covid-19 pandemic. These negotiations are in an advanced stage, constructive and carried out with the support of the lenders under its ~$300 million export credit facilities, the lenders under its $350 million revolving credit facility and an ad-hoc group of lenders representing a majority of the  ~$520 million term loan B facility.

MLPS & PIPELINES   

Press Release – Keyera announced plans to perform preventative maintenance at its Alberta EnviroFuels facility later this fall.  

MARKET COMMENTARY

Futures tracking the Nasdaq 100 index rose as a two-day sell-off in technology-related stocks halted, while worries about rising coronavirus cases and a patchy economic recovery weighed on the S&P 500 and the Dow futures. Travel and bank stocks weighed on major European indexes. China stocks staged a strong finish, led by heavyweight financials, while Japanese shares inched higher. The dollar extended overnight losses. Gold prices gained on lingering concerns over an economic recovery. Oil prices rose after Saudi Arabia pressed allies to stick to production quotas.

NASDAQ ENERGY TEAM THOUGHT LEADERSHIP


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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