SECTOR COMMENTARY:
Heading into the final trading session of the week, energy stocks are poised for a higher start, supported by gains in the underlying commodities while the broader index futures trade mixed following a disappointing jobs report. Nonfarm payrolls increased by just 194,000 jobs in September, falling short of economist forecast of 500K. Yields declined on the headlines which should support growth over value today.
Both WTI and Brent add to yesterday gains this morning, but trade at lows following nonfarm payroll data which missed expectations. “As other energy prices like natural gas and coal keep pushing higher, upside risks to the oil market have started to build,” said Bank of America’s Christopher Kuplent. Both benchmarks are on track to close higher for a 7th straight week.
Natural gas is up 0.2% to $5.693, after closing unchanged yesterday. Temperature forecasts for Northwest Europe indicate colder weather next week and a cold beginning the second week in November, driving early heating demand. BofA sees global and European gas markets in a continuing deficit despite Russia’s promises of additional volumes.
BY SECTOR:
U.S. INTEGRATEDS
Exxon Mobil in a Thursday night message to locked-out workers at its Beaumont, Texas, refinery accused the United Steelworkers union (USW) of engaging in misinformation and voter suppression, one day after a campaign to remove the union cleared a crucial hurdle, Reuters reported.
INTERNATIONAL INTEGRATEDS
Equinor is investing billions of dollars in blue hydrogen on a bet that it can make the fuel more cleanly than anyone else, Bloomberg reported. The state-controlled oil firm is among energy companies across Europe stepping up plans for hydrogen as mounting pressure to fight climate change spurs massive shifts in investment. Equinor believes it has the edge in the race to commercialize the industry because it leaks less methane than its rivals.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
No significant news.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
Shawcor announced that Gaston Tano, Senior Vice President Finance & Chief Financial Officer, has elected to step down and will depart the Company effective May 31, 2022. Shawcor also announced that Thomas R. Holloway will join the Company as Vice President & Chief Accounting Officer, commencing on or about December 1, 2021 and is expected to succeed Mr. Tano as the Senior Vice President Finance & Chief Financial Officer.
DRILLERS
Pioneer Energy Services , the successor to Pioneer Energy Services Corp. and a wholly owned subsidiary of Patterson-UTI Energy announced the accelerated mandatory conversion of all outstanding principal amount of its 5.00% Convertible Senior Unsecured PIK Notes Due 2025.
REFINERS
No significant news.
MLPS & PIPELINES
No significant news.
MARKET COMMENTARY
Dow futures turned negative in early trading Friday following September’s disappointing jobs report. European stocks edged lower as declines in the technology sector offset gains in oil and auto shares while Asian stocks rose, supported by advances in Chinese blue chips as trading resumed after the week-long National Day holiday. Oil prices rose on signs some industries have begun switching fuel from high-priced gas to oil and on doubts the U.S. government would release oil from its strategic reserves for now.
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