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The energy sector is poised for a higher start, supported by strength in the underlying commodities and despite weakness in the major equity indices. U.S. stock index futures slipped as investors worried about hawkish signals from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium amid fears of slowing economic growth.
WTI and Brent crude oil futures are trading higher on signs of improving fuel demand as the market awaited clues from the U.S. Federal Reserve chairman on the outlook for rate hikes in a speech later in the day. Despite uncertainty over the pace of rate hikes in the United States to tackle soaring inflation, worries about oil demand destruction eased this week as better than expected figures concerning the U.S. economy helped to dispel recession fears. Additional price support came from OPEC’s de facto leader Saudi Arabia on Monday flagging the possibility of production cuts to balance the oil market and offset the return of Iranian barrels to oil markets should Tehran clinch a nuclear deal with the West. Tehran is reviewing Washington’s response to a European Union-drafted final offer to revive a nuclear deal, with the EU expecting a response soon, though it is unclear how quickly Iranian oil exports would resume even if a deal is reached. If sanctions are lifted against Iran, it would need around a year and a half to reach its full capacity of 4 million barrels per day, up 1.4 million bpd from its current output.
Natural gas futures rose this morning, ahead of the expiration of the September contract, as preliminary estimates for storage week-ending today expects a build of +50 to +60 Bcf which compares to the 5-year average of +46 Bcf.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
Reuters reported that most of the units at BP Plc’s 435,000 barrel-per-day Whiting, Indiana, refinery were out of production on Thursday following a Wednesday night fire, said sources familiar with plant operations.
Production at Norway’s Oseberg South oil and gas platform shut on Friday due to a power outage, daily VG reported, quoting a spokesperson for operator Equinor.
PGS and Shell have entered into a multi-year agreement for access to a significant part of PGS’ MultiClient Data Library.
TotalEnergies, under fire after a report earlier this week saying it was supplying jet fuel to the Russian army, reiterated that this wasn’t the case, adding it would seek to end this “controversy”. In a statement, the company said it had asked its Russian partner Novatek clarity about condensate produced by their joint ventures.
CANADIAN INTEGRATEDS
Cenovus Energy announced the commencement of tender offers to purchase for cash certain of its outstanding series of notes for an aggregate purchase price, excluding accrued and unpaid interest, of up to $1.5 billion.
Federated Co-Operatives Limited said it received a ‘no action letter’ from the Canadian Competition Bureau to proceed with the acquisition of 171 retail fuel sites from Cenovus Energy.
U.S. E&PS
PDC Energy announced that its Board of Directors declared a quarterly cash dividend of $0.35 per share on PDC’s outstanding common stock. The dividend is payable on September 22, 2022, to stockholders of record at the close of business on September 8, 2022.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
The board of directors of Compass Minerals has declared a quarterly cash dividend of $0.15 per share. This dividend is payable Sept. 20, 2022, to shareholders of record as of the close of business on Sept. 9, 2022.
The U.S. Securities and Exchange Commission said on Monday it had charged Granite Construction and a former executive with fraud for inflating the financial performance of one of the company’s major subdivisions.
Halliburton announced that it has called for redemption the entire outstanding principal amount of its 3.50% Senior Notes due 2023. The redemption date for the Notes is September 25, 2022. The aggregate principal amount of the Notes currently outstanding is $600,061,000.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
As per SEC filing, on August 22, 2022, Plains All American Pipeline, L.P. and Plains Midstream Canada ULC, each a wholly-owned subsidiary of Plains GP Holdings, L.P., entered into that certain First Amendment to Credit Agreement amending certain of the terms of their Credit Agreement dated as of August 20, 2021 among the Partnership and PMC, as borrowers, Bank of America, N.A., as administrative agent, and the other lenders party thereto. Pursuant to the Revolving Credit Facility Amendment, among other things, the Eurocurrency Rate was replaced with Term SOFR and Canadian Term Rate, as applicable, and a mechanism was added to replace Term SOFR and Canadian Term Rate or other then-applicable interest rate benchmark if it is no longer available. In connection with the Revolving Credit Facility Amendment, the Maturity Date of the Revolving Credit Agreement was also extended from August 20, 2026 to August 20, 2027.
The Canada Energy Regulator (CER) said work was stopped at the TC Energy’s NGTL Edson Mainline work site near Caroline, Alberta, after it was notified of a serious, non-fatal injury on Thursday.
MARKET COMMENTARY
Futures for Wall Street’s major indexes fell, and the dollar eased as investors across the globe cautiously awaited a speech from Federal Reserve Chair Powell for signs on the rate hike trajectory. Japan’s Nikkei ended slightly higher, erasing some of its earlier gains. European shares slipped after a survey showed German consumer sentiment is projected to hit a record low for the third month in a row in September. Gold prices were lower. Oil prices gained as better-than-expected U.S. GDP data lowered concerns surrounding global fuel demand.
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.
This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary 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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