SECTOR COMMENTARY:
Energy stocks are poised for a mixed to higher start, backed by strength in the crude complex while the broader index futures ticked lower ahead of a big week for corporate earnings and as China reported disappointing GDP data overnight.
Oil futures are higher to start the week as energy prices continued to climb globally. WTI and Brent futures rose last week with Brent notching its eighth-consecutive week of gains, which is its longest streak since 1999. Shortages in coal, electricity, and natural gas have also led to additional demands for crude while OPEC+ has not increased production. The WTI November contract expires Wednesday.
Natural gas futures are off 3.6% to $5.22, U.S. natural gas futures fell to a three-week low as output slowly rises and on forecasts for the weather to remain milder than normal through early November. The decline came despite a slow but steady increase in U.S. liquefied natural gas (LNG) exports. Global gas prices were up 17% on Monday as utilities in Europe and Asia scrambled to fill inventories before the winter heating season.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
bp and Mercedes-Benz Trucks UK have successfully tested the first digital in-truck fuel payment system in the UK, running a successful pilot trial with Wren Kitchens. The ground-breaking new app-based system, bp In-Truck Pay, makes fuel purchasing and management faster, more efficient and more secure for both truck drivers and fleet managers
Patrick Pouyanné, Chairman and CEO of TotalEnergies opened the company’s UK Offshore Wind Hub in Aberdeen. The Hub will be part of the Company’s existing offshore operations centre in Aberdeen. The Hub will enable the transition of staff from oil and gas to offshore wind as that part of the Company’s UK business grows. It will thus leverage the offshore expertise that TotalEnergies’ Aberdeen operations have built over the last 50 years.
CANADIAN INTEGRATEDS
Raymond James upgraded Cenovus Energy to Outperform from Market Perform.
U.S. E&PS
Mizuho upgraded Coterra Energy and Antero Resources to Buy from Neutral.
Truist Securities initiated coverage of Coterra Energy with a Buy rating.
Truist Securities upgraded Occidental Petroleum to Buy from Hold.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
CES Energy Solutions, the Board of Directors of CES, and Mr. Tom Simons announced that Mr. Ken Zinger will take over as President and Chief Executive Officer and be appointed to the Board effective October 29, 2021. Mr. Simons will continue in his role until October 29, 2021 to enable an orderly transition of duties and responsibilities to Mr. Zinger, at which point he will resign as President, Chief Executive Officer, and member of the Board. The Board and Mr. Simons collectively agreed that the Company is on a solid operational and financial footing coming out of the recent industry downturn and is ideally positioned to take advantage of emerging opportunities. The transition of Mr. Zinger to the role of President and CEO has been part of the Company and Board’s long-term succession planning and it was the Board’s view that the time was right to implement this transition plan.
KBR has been awarded a $126.7 million recompete by the U.S. Department of Transportation (DOT) Volpe National Transportation Systems Center for Mission Information Technology Support (MITS) Services in Cambridge, Massachusetts to modernize technical, logistical, and safety-related transportation systems.
DA Davidson upgraded Martin Marietta Materials and Vulcan Materials to Buy from Neutral.
Solaris Oilfield files for mixed shelf of up to $500 million, Reuters reported.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
No significant news.
MARKET COMMENTARY
U.S. stock index futures were lower, tracking world shares, after data showed slower-than-expected growth in China’s economy last quarter and surging oil prices fed inflation concerns. Rising inflation expectations and higher U.S. bond yields boosted the dollar’s appeal against its rivals, while dulling demand for gold, which inched lower. Oil prices rose, buoyed by recovering demand and high natural gas and coal prices encouraging users to switch to fuel oil and diesel for power generation.
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.
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.
www.nasdaq.com