[ad_1]
The energy sector is set for a lower open, pressured by weakness in the crude complex and the major market futures. U.S. equities are expected to kick-off the holiday-shortened week lower as COVID-19 flare ups in China increase fears of slowing growth.
WTI and Brent crude oil are down to near two-month lows as traders are concerned over the demand outlook due to China’s Zero COVID-19 policy and on strength in the dollar. New COVID case numbers in China are close to April peaks leading some districts in Beijing to switch to online classes on Monday. Additionally, the city of Guangzhou ordered a five-day lockdown. The prospect of higher interest rates continues to add strength to the greenback.
Natural gas futures are up this morning amid forecasts for lower temperatures in the New England region, than previously expected. In international news, QatarEnergy has signed a 27-year deal to supply China’s Sinopec with LNG, the longest such LNG agreement so far as volatile markets drive buyers to seek long-term deals.
BY SECTOR:
US INTEGRATEDS
Exxon Mobil said that its 390,000 barrel per day (bpd) Fawley oil refinery in southern England is unaffected by strike action.
INTERNATIONAL INTEGRATEDS
Workers at BP’s Rotterdam refinery, which is currently offline, will not help restart operations unless their wage demands are met, union leaders said.
Financial Times reported that BP’s US boss said Washington’s new climate law would put its green plans in the US “on steroids”, even as the oil supermajor says it will expand its shale oil and gas business in the country.
BP has all but stopped fuels production after a serious incident at its Rotterdam refinery, Bloomberg News reported on Friday, adding that workers have also postponed the work-to-rule action started this week.
Reuters reported that Brazilian President-elect Luiz Inacio Lula da Silva begins interviews this week with candidates to run oil firm Petrobras, people familiar with the talks said, kicking off what may be a rocky few months for the state-controlled company.
Petrobras informed that the distribution of the second installment of the remuneration to shareholders, approved by the Board of Directors on that date, to be paid on January 19, 2022, in the amount of R$ 1.67445, will be paid as follows: (i) Dividends: R$ 1.600192 net value per common and preferred outstanding share; (ii) Interest on equity (IOE): R$ 0.074258 gross value per common and preferred outstanding share.
Petrobras, regarding the news published in the media about the payment of dividends, clarifies that it is aware of the order from the Reporting Minister of the Federal Audit Court (TCU) that denied the injunction requested by the Public Prosecutor’s Office to suspend the payment of dividends approved in 3Q22. In addition, by means of the order, it was determined that diligence should be carried out to obtain additional information for a final decision on the merits.
Khalifa Economic Zones Abu Dhabi – KEZAD Group, the integrated trade, logistics, and industrial hub of Abu Dhabi and a subsidiary of AD Ports Group, announced an agreement with TotalEnergies Renewables Distributed Generation Middle East & Africa, an affiliate of TotalEnergies, to explore opportunities to solarise assets across KEZAD’s industrial ecosystem.
Application has been made by TotalEnergies SE to the UK Listing Authority and the London Stock Exchange for the admission of 9,130,380 ordinary shares of TotalEnergies SE with a par value of 2.50 Euros per share, issued on June 8, 2022 in connection with a share capital increase reserved for employees.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Effective November 17, 2022, Mr. Chad Griffith will no longer serve as the Chief Operating Officer of CNX Resources. Also effective, November 17, 2022, Mr. Navneet Behl will assume the role of COO of CNX left vacant by Mr. Griffith’s departure. In his role as COO, Mr. Behl will be responsible for daily management of the Company’s asset base and safe, compliant, and effective execution of its operational plan. Immediately prior to his appointment as COO, Mr. Behl, age 50, held the role of Vice President – Engineering at CNX, a role which he assumed upon joining the Company in 2022.
Societe Generale downgraded ConocoPhillips to Sell from Hold.
Reuters reported that Ranger Oil is exploring a potential sale as the south Texas oil and gas producer looks to capitalize on high energy prices to pursue strategic options, people familiar with the matter said on Friday.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
Granite announced that it has been selected as the Construction Manager/General Contractor (CMGC) for the Albion River Bridge Replacement/Rehabilitation project. Located near Albion, California, the project will be delivered using the CM/GC method, which includes the contractor early in the design process to incorporate the contractor’s perspective in the planning process. This method provides more opportunities for innovation and efficiency than traditional project delivery methods. The construction portion of the project is anticipated to be valued in a range of $50 million to $85 million and awarded in 2026.
Halliburton announced that its board of directors has declared a 2022 fourth quarter dividend of twelve cents ($0.12) a share on the Company’s common stock payable on December 21, 2022, to shareholders of record at the close of business on December 8, 2022.
KBR announced it has been awarded a $156.7 million task order to support capabilities assessment and enhancements for the U.S. Army’s Utility Helicopter 60 Variant (UH-60V) fleet, providing technologically superior and cost-effective helicopters for U.S. and Allied Forces. KBR was awarded this contract under the Department of Defense Information Analysis Center’s (DoD IAC) multiple-award contract (MAC) vehicle. These DoD IAC MAC task orders are awarded by the U.S. Air Force’s 774th Enterprise Sourcing Squadron to develop and create new knowledge for the enhancement of the Defense Technical Information Center (DTIC) repository and the research and development and science and technology community.
DRILLERS
No significant news.
REFINERS
As per SEC filing, Delek US Holdings entered into an amended and restated term loan credit agreement with Wells Fargo Bank, National Association, as administrative agent, the Company, as borrower, and the lenders party thereto, providing for a senior secured term loan facility in an initial principal amount of $950 million.
MLPS & PIPELINES
JP Morgan downgraded Plains All American Pipeline LP to Neutral from Overweight.
JP Morgan downgraded Plains GP Holdings LP to Neutral from Overweight.
MARKET COMMENTARY
U.S. stock index futures declined as COVID-19 flare ups in China added to concerns about slowing growth, while Disney shares jumped as investors cheered Bob Iger’s surprise comeback as chief executive. European shares slipped, with economically sensitive sectors like mining and industrials leading the losses. Japan’s stock markets edged up as traders awaited more clarity on the outlook for interest rates. Oil dropped as concerns over fuel demand from China and dollar strength weighed on prices, while gold prices fell.
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.
[ad_2]
Source link
