Oil Prices Steady as Planned E.U. Russian Oil Ban Balances Low Global Demand

2


The energy sector is poised for a higher start, supported by mild strength in the underlying commodities and a sign of a strong move higher in the major market indices. U.S. stock index futures gained, with banks and megacap growth shares rising on the last day of a week that saw market volatility on concerns about the impact of higher inflation and subsequent rate hikes to tame it.

WTI and Brent crude oil futures were largely steady and on course for little change on the week as a planned European ban on Russian oil balanced out investor concerns about weakening economic growth hitting demand. Asian economies faced a choice between supporting growth with more stimulus and withdrawing it to stabilize debt and inflation. China’s crude oil imports from top supplier Saudi Arabia soared 38% in April from a year earlier, hitting the highest monthly volume since May 2020. The hefty purchases, with trades completed mostly in February, compare with 1.61 million bpd in March and 1.57 million bpd a year earlier. The Biden administration will propose a new five-year plan for offshore oil and gas development by June 30, the date when the current plan expires, Interior Secretary Deb Haaland said. The announcement comes as the administration has faced pressure from Republican lawmakers to expand domestic drilling to address soaring fuel costs. President Joe Biden, however, wants to reform the federal government’s oil and gas program to consider its impacts on climate change.

Natural gas futures are trading lower as NOAA’s 6-10 day outlook shows near- to above-normal temps across much of the western US and High Plains, and near- to below-normal temps for the Pacific Northwest and parts of the Central MS Valley. Above-normal temps are seen across the southern Plains extending to the east.

BY SECTOR:

US INTEGRATEDS

ExxonMobil said it signed an agreement with subsidiaries of BKV Corporation for the sale of operated and non-operated Barnett Shale gas assets in Texas for $750 million with additional payments contingent on future natural gas prices.

INTERNATIONAL INTEGRATEDS

Equinor engaged on 9 February 2022 a third party to conduct repurchases of the company’s own shares to be used in the share-based incentive programmes for employees and management for the period from 15 February 2022 until 13 January 2023. The mandate was on 20 May 2022, and with effect from the same date, amended to reflect that the maximum price that can be paid per share purchased under the buy-back programme is increased from NOK 500 to NOK 1,000.

Equinor announced on 9 February 2022 an ordinary dividend per share of USD 0.20 and an extraordinary dividend per share of USD 0.20 for fourth quarter 2021. The NOK dividend per share is based on average USDNOK fixing rate from Norges Bank in the period plus/minus three business days from record date 13 May 2022, in total seven business days.

South Korea’s third largest refiner, S-Oil Corp, has suspended production of several processing units after a blast at its Onsan refinery, it said, a step that could tighten gasoline supplies and boost refiners’ margins in Asia. S-Oil, a key exporter of products that is majority owned by Saudi Aramco, has suspended outputs at the units in the city of Ulsan as a precaution since they were near the resulting fire, the company added in a regulatory filing.

CANADIAN INTEGRATEDS

No significant news.

U.S. E&PS

No significant news.

CANADIAN E&PS

No significant news.

OILFIELD SERVICES

Core Laboratories N.V. announced it held its annual shareholder meeting on 19 May 2022 in Amsterdam, The Netherlands. At that meeting, the shareholders re-elected Ms. Martha Carnes and Mr. Michael Straughen and elected Ms. Katherine Murray to the supervisory board.

Granite announced that it has secured the contract for Segment Five of the I-40 Median Fill PM 100-125 in San Bernardino County, California. The approximately $10 million contract was awarded by Caltrans and will be funded by a mixture of state and federal sources. The award is anticipated to be included in Granite’s second quarter CAP.

Halliburton announced that at its annual meeting of shareholders held in Houston, Texas, on May 18, 2022, the shareholders elected all eleven nominees to the Company’s board of directors and ratified the selection of KPMG LLP as principal independent public accountants for 2022. Shareholders elected board members Abdulaziz F. Al Khayyal, William E. Albrecht, M. Katherine Banks, Alan M. Bennett, Milton Carroll, Earl M. Cummins, Murry S. Gerber, Robert A. Malone, Jeffrey A. Miller, Bhavesh V. Patel, and Tobi M. Edwards Young. The advisory resolution on executive compensation was not approved by the shareholders. At the board of directors’ meeting following the shareholders’ meeting, the board declared a 2022 second quarter dividend of twelve cents ($0.12) a share on the Company’s common stock payable on June 22, 2022, to shareholders of record at the close of business on June 1, 2022.

KBR announced its Board of Directors has declared a regular quarterly dividend of $0.12 per share on the company’s common stock, par value $0.001 per share, to be paid on July 15, 2022, to stockholders of record on June 15, 2022.

Shawcor Ltd. announced that it has secured an early exit from its leased facility, which formerly housed the Company’s FlexFlow operations, in Calgary’s Oxford Airport Business Park. This exit will be completed during the third quarter of 2022 and will result in net savings of approximately $15 million over the course of the next seven years. The Company’s Calgary-based activities will be consolidated into its remaining 54th Avenue location. The Company will incur one-time restructuring costs of approximately $2 million to execute this transaction, which will be reflected in the second quarter financial results. CBRE Group served as the Company’s real estate advisor in this transaction.

DRILLERS

No significant news.

REFINERS

Valero Energy and three contractors have been fined a total $1.75 million for safety violations related to a worker’s death on Nov. 12, 2021 at its 145,000 barrel-per-day refinery in Benicia, California, a state regulator said.

MLPS & PIPELINES

Enbridge announced that, after taking into account all election notices received prior to 5:00 p.m. (EST) on May 17, 2022, 107,904 of its 18,269,812 Cumulative Redeemable Preference Shares, Series B were tendered for conversion, on a one-for-one basis, into Cumulative Redeemable Preference Shares, Series C of Enbridge and 1,188,789 of its 1,730,188 Series C Shares were tendered for conversion, on a one-for-one basis, into Series B Shares of Enbridge, effective on June 1, 2022.

WhiteWater, EnLink Midstream, LLC, Devon Energy, and MPLX LP have reached a final investment decision to move forward with the construction of the Matterhorn Express Pipeline after having secured sufficient firm transportation agreements with shippers.

MARKET COMMENTARY

U.S. stock index futures were higher, and global shares rebounded after China cut a key lending benchmark to support its economy, while investors remained cautious amid worries about slowing growth and high inflation. Gold prices rose as a pullback in the dollar from two-decade highs and deepening concerns over U.S. economic growth burnished the metal’s safe-haven appeal. Oil prices steadied as a planned European ban on Russian oil balanced out investor concerns about weakening economic growth hitting 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.



Source link