SECTOR COMMENTARY:
Energy stocks are set to open modestly lower, with lower oil prices and flattish broader index futures playing a role. Trading will continue to be light in this final week of trading for 2021.
Oil prices receded after edging towards $80 per barrel in earlier morning trade as global supply outages and declining U.S. inventories offset worries that rising coronavirus cases might reduce demand. “Markets are overwhelmingly pricing in the latest coronavirus variant as a milder incarnation, despite its easier contractibility,” said OANDA analyst Jeffrey Halley in a note.
Natural gas futures continue to rise, up another 4%, to ~$4.23, as forecasts for next week are finally calling for colder weather.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
Petroleo Brasileiro SA said it completed the sale of 27 onshore oil fields in the Cricare cluster for up to $156 million. The buyer is Karavan Seacrest SPE Cricare, which is 51% owned by Karavan O&G Participacoes e Consultoria Ltda. and 49% owned by Seacrest Capital Group Ltd. The cluster is located in the state of Espirito Santo and in January through November produced an average of 1,300 barrels per day of oil and 15,400 cubic meters of gas per day. Petrobras received a closing payment of $27 million, in addition to an $11 million payment made at the signing of the contract. Petrobras is also set to receive another $118 million in payments, though the amount might be adjusted based on future oil prices, the company said.
Petrobras significantly increased the amount of carbon dioxide it re-injected into its offshore oilfields in 2021, a major step forward in the firm’s emission-reduction goals, Reuters reported. According to a release provided by Petrobras, formally Petroleo Brasileiro SA PETR4.SA, the company re-injected 6.7 million tonnes of carbon dioxide produced in the oil extraction process from January through September, using an advanced method called carbon capture, utilization and storage, or CCUS. That is equivalent to the amount of carbon dioxide re-injected by the firm in all of 2020.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
EQT Corporation announced it has commenced a tender offer to purchase for cash up to $250.0 million aggregate principal amount of its outstanding 3.000% Senior Notes due 2022.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
No significant news.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
No significant news.
MARKET COMMENTARY
U.S. stock index were flat to slightly lower, as heavyweight Tesla gained, while hopes that the Omicron coronavirus variant is less deadly than the previous strain calmed investors amid daily cases in the country hitting a record high.
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.
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