Oil futures edged down amid slowing Chinese economy concerns

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SECTOR COMMENTARY:

Energy sector poised for a mixed-to-lower start, supported by strength in major equity futures and under pressure from weakness in underlying commodities

WTI and Brent crude oil futures continued to fall for the second straight session, weighed down by last night’s industry supply report which showed US crude inventories had unexpectedly risen last week and amid concerns about the slowing Chinese economy. Ahead of official EIA data later today, last night’s API report showed a large surprise increase in U.S. oil and distillate inventories as well as a much larger than expected increase in gasoline. last week. China’s weakening housing market and growing blackouts have shaken the morale of major importers, as any spillover to the world’s second-largest economy would likely have a ripple effect on oil demand.

Natural gas futures eased this morning amid forecasts of lingering mild weather over the next two weeks, which should allow utilities to store enough gas for the winter heating season when demand for fuel peaks. U.S. prices have fallen even as gas in Asia traded to new records and expectations of increased U.S. demand over the next two weeks as warmer-than-usual weather in parts of the country will force some homes and businesses continue to use their air conditioners.

BY SECTOR:

UNITED STATES INTEGRATED

No significant news.

INTEGRATED INTERNATIONAL

Petrobras indicated that the Chinese CNOOC is interested in acquiring an additional 5% stake in its contract for the sale of production rights for the Buzios field, Reuters reported. Petroleo Brasileiro SA said the deal with CNOOC is valued at $ 2.08 billion.

CANADIAN INTEGRATED

No significant news.

American E&PS

APA Company today announced the results of appraisal drilling at Keskesi South-1 on Block 58 off Suriname. APA Suriname has a 50% direct stake in the block, TotalEnergies, the operator, has a 50% direct stake.

EQT Corporation announced the commencement of a subscribed public offering of 25,930,000 common shares by certain shareholders who received the shares as part of the Company’s acquisition of the upstream and intermediary subsidiaries of Alta Resources Development, LLC. These selling shareholders intend to grant the Underwriters a 30 day option to purchase up to 3,889,500 additional shares of the common shares of the Company. EQT will not sell any common shares under the Offer and will not receive any proceeds from the sale of the shares offered by the selling shareholders. The offering is subject to market and other conditions and there can be no assurance that or when the offering will be made.

Citi improved Marathon Oil to buy from neutral.

Evercore upgraded Western Oil to surpass In-Line

Ovintiv announced that it is moving forward on its commitment to increase shareholder returns with obtaining regulatory approvals for a share repurchase program. This action is consistent with the Company’s capital allocation framework, which supports the objective of unlocking shareholder value by implementing Ovintiv’s strategic priorities in terms of financial strength, increased returns. in cash for shareholders, generating superior returns on capital investments and ESG progress.

CANADIAN E&PS

Ovintiv announced that it is moving forward on its commitment to increase shareholder returns with obtaining regulatory approvals for a share repurchase program. This action is consistent with the Company’s capital allocation framework, which supports the objective of unlocking shareholder value by implementing Ovintiv’s strategic priorities in terms of financial strength, increased returns. in cash for shareholders, generating superior returns on capital investments and ESG progress.

OIL FIELDS SERVICES

SPG on behalf of the PGS-TGS joint venture acquired over 10,000 km² of GeoStreamer 3D data off the coast of Newfoundland and Labrador between May and September of this year. The accelerated results will be delivered in December 2021 and the final imaging products will be ready in the first quarter of 2022.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

Enbridge announced a milestone with the substantial completion of the Line 3 replacement project and the establishment of a commissioning date of October 1. This milestone marks the complete replacement of the entire 1,765 kilometer / 1,097 mile long pipeline from Edmonton, AB. at Superior, WI. Along with a new thicker-walled state-of-the-art pipe, its completion ensures a safe and reliable supply of North American crude oil to US refineries, helping to improve the quality of life for millions of people.

MARKET COMMENTARY

U.S. stock index futures rose on the rebound in tech stocks, after one of Wall Street’s worst sellers of the year in the previous session, led by rising Treasury yields. European stocks were up. Asian stocks ended lower amid concerns about China’s economic growth. The dollar index was little changed amid arguments over the US debt ceiling that threatened to plunge the government into a shutdown. Oil prices fell after US crude inventories unexpectedly surged. Gold was in positive territory.

THOUGHTFUL LEADERSHIP OF THE NASDAQ ENERGY TEAM


The Nasdaq Advisory Services Energy team is part of the Nasdaq Advisory Services, the most experienced team in the industry. The team provides unparalleled shareholder analysis, a comprehensive view of trading and investor activity, and insight on how best to manage investor relations outreach efforts. If you have any questions, please contact Tamar Essner.


This communication and the content found by following any link here are provided to you by Corporate Solutions, a company of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nasdaq makes no representations or warranties with respect to this communication or such content and expressly disclaims any implied warranties under law. Sources include Reuters, TR IBES, WSJ, The Financial Times, and exclusive Nasdaq research.

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


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